What does long-term care insurance cover?

Long-term care insurance may cover in-home care, assisted living, memory care, adult day care, and nursing home care when a person needs help with activities of daily living or has a qualifying cognitive impairment.

How much does long-term care insurance cost?

The cost of long-term care insurance depends on age, health, benefit amount, benefit period, inflation protection, elimination period, state of residence, and the insurance carrier selected.

What is the best age to buy long-term care insurance?

Many people compare long-term care insurance in their 40s, 50s, or early 60s, before health changes reduce eligibility or increase premiums.

Does Medicare cover long-term care?

Medicare generally does not pay for extended custodial long-term care. It may cover limited skilled care under specific conditions, but it is not designed to fund ongoing help with daily living activities.

What health conditions affect long-term care insurance eligibility?

Insurance carriers review medical records, prescription history, cognitive history, mobility, chronic conditions, surgeries, and overall stability. Conditions such as diabetes, heart disease, neurological disorders, memory concerns, or recent major health events may affect eligibility.

Inflation Benefit | Long-Term Care Insurance Authority

What is the “Inflation Benefit” in a long-term care insurance policy?

by Scott A. Olson, CLTC®

Inflation Benefit = how a long-term care insurance policy’s benefits grow in order to try to keep pace with the increasing costs of care. Source: National Association of Insurance Commissioners A Shopper’s Guide to Long-Term Care Insurance 2009 The Inflation Benefit...

What is the “Inflation Benefit” in a long-term care insurance policy?

by Scott A. Olson, CLTC®

The Inflation Benefit is how a long-term care insurance policy’s benefits grow in order to try to keep pace with the increasing costs of care. The Inflation Benefit is sometimes called “Inflation Protection” or “Benefit Increases” or...

What are some common choices you have for a “Type 2” Inflation Benefit

by Scott A. Olson, CLTC®

Most long-term care insurance policies offer several choices for the Inflation Benefit. The most common “Type 2” Inflation Benefit choices are: 3% Compound: the Daily Benefit you choose for your long-term care policy will automatically grow each year by...

Watch out for this “gotcha”: Inflation Benefits that stop growing!

by Scott A. Olson, CLTC®

Be aware that some long-term care insurance policies offer Inflation Benefit options that stop growing at a certain point. Another way to say this would be that the Daily Benefit (or Monthly Benefit) has a “cap” on it. For example, an Inflation Benefit...

How does your choice of Inflation Benefit impact the Daily Benefit over the life of your long-term care policy?

by Scott A. Olson, CLTC®

How does the Inflation Benefit impact the Daily Benefit of your long-term care insurance policy? I noted in a previous post that the Daily Benefit is the single most important part of your long-term care policy. The Daily Benefit, however, is linked to the Inflation...

Little known secret about the Inflation Benefit in a long-term care policy

by Scott A. Olson, CLTC®

Depending upon your age, when buying your long-term care insurance policy, you may be better off buying a higher Daily Benefit with a 3% Compound Inflation Benefit rather than a lower Daily Benefit with a 5% Compound Inflation Benefit. In some situations, it might be...