16.2 Long-Term Care Insurance
Long-term care (LTC) refers to a broad range of medical, personal, and environmental services meant to aid those who have lost their ability to remain completely independent in the community. Long-term care (LTC) insurance provides medical care needed for an extended period of time, typically longer than 90 days. And, depending on the severity of the impairment, assistance may be given at home, at an adult care center, or in a nursing home.
The two types of illnesses we're going to go over are acute illness and chronic illness.
Acute Illness
Acute illness is a serious condition that with proper medical treatment, the patient should receive full recovery (such as the flu).
Chronic Illness
Chronic illness is a physical condition that is constant in nature and for which there is no full recovery possible (such as arthritis).
There are several types of LTC plans out there with varying coverage. Most policies, however, pay a lump sum benefit per day. For instance, if the policy pays a $200 per day assisted living facility benefit and the facility charges $225 per day, the additional $25 would be the patient's responsibility. Conversely, if the facility charges $175 per day, the policy will still pay the policy benefit of $200 per day.
Different types of health problems determine what type of care is needed and where it should be provided.
