Brief description of long-term care insurance

On Behalf of | Mar 16, 2022 | Long-Term Disability Insurance

Long-term care (LTC) insurance is designed for people with chronic medical conditions that make everyday living difficult. Recipients in New Jersey receive daily assistance that extends for years or decades. LTC is needed for daily activities and differs from other types of coverage that are needed occasionally.

How long-term care insurance works

Long-term care insurance is a plan that provides for many years of professional care for elderly or disabled individuals. LTC insurance provides coverage for daily, long-term needs that are not covered by standard health insurance. This policy is recommended to people who have chronic medical conditions or disabilities that are too expensive and complicated for regular insurance.

Without a long-term care insurance policy, you have to pay for the remaining medical costs yourself. A person’s retirement savings can be depleted in a few years. If you receive money from Medicaid, your options are limited to nursing homes that accept government payments. Obtaining private long-term disability helps you to benefit from assisted living services.

When you apply for an LTC policy, you select the amount of long-term coverage needed. You become eligible by not being able to perform two out of the six activities of daily living (ADLs). You must undergo an interview and submit your medical records to the LTC insurance company.

Your extended health plan options

Long-term care planning is not the same as choosing a regular health insurance plan. It’s designed for people with long-term illnesses or disabilities that have extensive living needs. They are better off getting private long-term disability to cover their lifelong health needs, whether they live in nursing homes, assisted living facilities or private homes.