Long Term Care Insurance - The Woodlands Health insurance Advisors *Woodlands*Spring*Conroe

What is Long Term Care Insurance?

Long Term Care Insurance (LTC or LTCI) is a type of insurance product that helps cover the cost of long term care beyond a predetermined period. This type of insurance covers care that is generally not covered by health insurance, Medicare, or Medicaid.

Individuals who require long-term care are typically not sick in the traditional sense, but are unable to perform basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring, and walking.

Long-term care insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing home, and Alzheimer’s facilities. If home care coverage is purchased, long-term care insurance can pay for home care from the first day it is needed. It can pay for a visiting or live-in caregiver, companion, housekeeper, therapist, or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum).

Other benefits of long-term care insurance include:

Many individuals may feel uncomfortable relying on their children or family members for support and may find that long-term care insurance can help cover out-of-pocket expenses. Without long-term care insurance, the cost of providing these services may quickly deplete the savings of the individual and/or their family.
Premiums paid on a long-term care insurance product may be eligible for an income tax deduction. The amount of the deduction depends on the age of the covered person. Benefits paid from a long-term care contract are generally excluded from income.
Business deductions of premiums are determined by the type of business. Generally, corporations paying premiums for an employee are 100% deductible if not included in the employee’s taxable income.

Medicaid provides some of the benefits of long-term care insurance. As a welfare program, Medicaid provides medically necessary services for people with limited resources who need nursing home care but can stay at home with special community care services. However, Medicaid generally does not cover long-term care provided in a home setting or for assisted living. People who need long-term care often prefer care in the home or in a private room in an assisted living facility.