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
worth of each accumulation unit at the end of each valuation period for a variable annuity. This value is similar to that of the net asset value for a mutual fund. ...
In property insurance, a stipulated agreement between the insurance company and the insured that the amount of insurance coverage under the policy is sufficient to be in compliance with the ...
Computer system established by London trade associations for processing insurance policies. The work of LIMNET involves the notification and settlement of insurance policy claims. ...
Record of losses, whether or not insured. This record is used in predicting future losses and in developing premium rates based on expectation of insured losses. ...
Decision in the absence of a plaintiff or defendant at the specified court time. ...
Process of distributing the costs associated with losses and risks over a number of insureds. ...
Property coverage for damage or destruction of structures in the course of construction. For example, the standing frame of a house destroyed by fire would be covered. ...
Insurance company's investment in mortgages that have defaulted (mortgages in default) divided by its adjusted surplus account. The smaller this ratio, the more financially sound the ...
Reserves required by state regulators. Because regulators must assure that an insurance company remains solvent and that it can pay future claims, they set conservative standards for ...

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