Definition of "Long-term care (ltc)"

Melissa  Thompson real estate agent

Written by

Melissa Thompsonelite badge icon

Keller Williams Realty Cityside

Day-to-day care that a patient (generally older than 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age, such that the patient can no longer perform at least two of the five basic activities of daily living: walking, eating, dressing, using the bathroom, and mobility from one place to another. There are basically three types of LTC plans:

  1. Skilled nursing care provided only by skilled medical professionals as ordered by a physician, MEDICARE will pay a limited amount of the associated cost.
  2. Intermediate care provided only by skilled medical professionals as ordered by a physician. This care involves the occasional nursing and rehabilitative assistance required by a patient.
  3. Custodial care provided only by skilled medical professionals as ordered by a physician. The patient requires personal assistance in order to conduct his or her basic daily living activities.
When selecting a LTC policy, some of the more important considerations include:
  1. Renewability policy should be a GUARANTEED RENEWABLE CONTRACT.
  2. Waiting period-length of time before benefits are paid should not exceed 90 days.
  3. Age eligibility upper age limit should be at least 80.
  4. Length of time benefits are paid typically the range is 5 to 10 years. It would be preferable to have benefits paid for life.
  5. Inflation guard the benefit level should be automatically adjusted each year according to the increase in the costs charged by the long-term-care providers.
  6. Premium waiver after the patient has received benefits for at least 90 days, the patient is no longer required to make premium payments for as long as he or she is under long-term care.
  7. No increase of premiums with age premiums should be based on the age at the time of application and should never increase as a result of changes in age.
  8. No limitations for preexisting conditions there should be no PREEXISTING CONDITION limitations.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Date when an insurance company issues a policy. This date may be different from the date the insurance becomes effective. ...

In a pension plan that an employer is required to make against future contributions (other than a cash basis as required by the IRS). Such credits may arise when an employee leaves an ...

Provision applied as a rider attached to an ordinary life insurance policy for the purpose of meeting estate planning requirements. When the insured dies, the beneficiary is entitled to ...

Intentional damage or destruction of another person or business's property. Insurance can be purchased by the owner of the property to protect against this exposure. ...

Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the re-insurer pays the amount of the ...

Massachusetts commissioner of insurance responsible for the passage of legislation (1861) that guaranteed policy owners of that state equity in the cash value of their life insurance. The ...

Right of one party to use land owned by another party. For example, an electric utility can obtain an easement through court action to place its power lines across someone's property, even ...

Act that requires the Department of Labor (DOL) to have a formal program to educate the public about the importance of saving for retirement. The DOL is also required to educate the public ...

Contract combining whole life and decreasing term insurance. A monthly income is paid to a beneficiary if an insured dies during a specific period. At the end of that period, the full face ...

Popular Insurance Questions