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

Same as term Adjuster: individual employed by a property and casualty insurance company to settle on its behalf claims brought by insureds. The adjuster evaluates the merits of each claim ...

Includes rate of return, how long the annuity's interest rate is guaranteed, loads (front, middle and back), financial ranking of the insurance company offering the annuity, the monthly ...

Denial of coverage for damage, in inland marine insurance, stemming from routine use of the property. Property can be expected to deteriorate somewhat over time from normal use. This is not ...

Legal right of a passenger in an automobile involved in an accident to bring a liability suit against the driver. It is deemed that a special standard of care is owed by an automobile ...

Element used to adjust losses to reflect the incurred but not reported claim (IBNR) under the retrospective method of rating. ...

Coverage by at least two insurance policies providing the same coverage for the same risk. ...

Division of a sum of money between a deferred annuity and an immediate life annuity certain. ...

In property insurance policy, clause that stipulates that if legislative acts or acts of the insurance commissioner's office expand the coverage of an insurance policy or endorsement forms ...

Section of some inland marine insurance {transportation insurance) and many other property insurance policies excluding coverage for damage to shipped goods by vermin such as rats. ...

Popular Insurance Questions