Long Term Care Insurance Flashcards
Long Term Care
LTC refers to a broad range of supportive medical, personal, and social services needed by people who are unable to meet their basic living needs for an extended period of time because of accident, illness, or frailty.
What are the essential elements of LTC?
The need for medical, personal, or social services.
Need resulting from an accident, illness, or frailty.
Services provided in the home or a nursing home.
Services that assist individuals in performing the essential ADLs.
Long Term Care Duration
According to the U.S. Department of Health and Human Services, men typically need 2.2 years of long-term care services, and women may require 3.7 years.
What are 3 reasons that someone might consider long-term care insurance?
High Risk: It is estimated that 70% of all elderly persons will spend some time in a nursing home.
High Cost: Depending on location, yearly costs can easily exceed $100,000 for long-term-care expenses.
Your Cost: Those who need long-term care services might possibly use up their savings within one year.
Group Long-Term Care Insurance
A group long-term care plan is an employer-provided benefit similar to health insurance. A long-term care plan is used when an employer wishes to provide an additional tax-favored benefit to employees that might be too expensive for the employees to consider without the employer’s involvement.
What is the average cost of nursing home care per day?
The cost can vary from $200 a day to over $300 a day depending upon where you live.
Long-Term Care Elements
The Essential Elements of LTC are:
the need for medical, personal or social services
the need results from an accident, illness or frailty
services are provided by other persons, either paid or unpaid, at home or in a nursing home, and
services are to assist the individual in performing the essential activities of daily living (ADLs).
Three Levels of Nursing Home Care
Skilled nursing care
Is the highest level of nursing care and demands the greatest expertise. It is twenty four-hour care ordered by a physician and provided by a registered nurse, licensed practical nurse, or licensed therapist.
Intermediate nursing care
Is similar to skilled nursing care except that the patient neither receives nor needs twenty four-hour attention. Thus, it is effectively non-continuous skilled nursing care.
Custodial care
The most basic level of nursing care, typically taking the form of assistance with activities of daily living. Individuals providing non-medical care usually are not medical personnel.
Waiver of Premium
Waiver of Premium provision means that the insured does not have to pay any premiums due while they are receiving benefits.
Renewability of LTCI
Most policies are guaranteed renewable for life. Very few policies are issued on a non-cancelable basis, which means that the premium cannot be changed and the policy cannot be canceled.
