Long-term Care (ltc)
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:
- Skilled nursing care provided only by skilled medical professionals as ordered by a physician, MEDICARE will pay a limited amount of the associated cost.
- 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.
- 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.
- Renewability policy should be a GUARANTEED RENEWABLE CONTRACT.
- Waiting period-length of time before benefits are paid should not exceed 90 days.
- Age eligibility upper age limit should be at least 80.
- Length of time benefits are paid typically the range is 5 to 10 years. It would be preferable to have benefits paid for life.
- 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.
- 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.
- 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.
- No limitations for preexisting conditions there should be no PREEXISTING CONDITION limitations.
Popular Insurance Terms
Annuity modified joint life and survivorship annuity under which the income payments are reduced to one-half or two-thirds of the initial income amounts upon the death of the first ...
Determination that investments by parents in their children's education through the purchase of Series EE Savings Bonds, which generate interest income, are tax-exempt if the proceeds are ...
Coverage required by the laws of a particular state. For example, many states stipulate minimum amounts of automobile liability insurance that must be carried. ...
Life insurance accounting method that does not require any terminal reserve for a policy at the end of the first year. First-year policy acquisition expenses, such as agent commission, ...
Expenses that have or may not yet have been paid by an insurance company. ...
The term pro rata comes from Latin and translates to in proportion, proportionally, the proportion of, proportionately determined, or according to a specific rate. It is often used in legal ...
Federal statute relating to drug abuse policies that requires all employers with federal contracts at least equal to $25,000 to certify, as a condition of receiving a federal contract, that ...
1961 federal legislation that allows the U.S. Export-Import Bank to set up insurance protection for U.S. exporters against credit risk and political risk in order to help make U.S. exports ...
Expense listed on the Income and Expenditure accounting statement for the unexpired insurance policy owned. ...

Have a question or comment?
We're here to help.