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

Crime against the state for which an officer of the state can bring legal action. Society is harmed by an individual breaking the laws of the state. Usually there is no statue of ...

Clause, generally found in business interruption insurance, that establishes the same indemnification basis as the coinsurance clause. ...

Detailed descriptive list made available to the survivor (s) of the insured showing: attorney, accountant, insurance agent, and location of important documents such as wills, power of ...

Provision in almost all excess of loss reinsurance contracts under which payment is made by a re insurer of each and every loss incurred by the cedent in excess of a specified sum, up to a ...

Standard Commercial Property Floater form covering death or damage to livestock as the result of insured perils such as fire, lightning, explosion, smoke, wind, hail, aircraft, earth quake, ...

basic feature of the social security act under which benefits paid are associated with the employee's earnings that have been taxed during the employment period. ...

Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old living room sofa will not be replaced at ...

Endorsement to the commercial general liability insurance (CGL) policy that provides liability coverage to an insured business for damages anywhere in the world. Policies typically have ...

Account established and administered by a state agency to finance a mandatory insurance program, for example, workers compensation insurance. ...

Popular Insurance Questions