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

Life insurance: Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds. Stocks(a) preferred stock investment ...

Payment by the insurance company to the insured for the actual expenses incurred by the insured, such as medical expenses. ...

Life insurance that stays in effect for only a specified, limited period. If an insured dies within that period, the beneficiary receives the death payments. If the insured survives, the ...

Broad excess protection for liability over the level of primary coverage or self insurance. Umbrella policies are written for both business and personal liability. For example, a personal ...

Securement of funds from outside sources such as by borrowing or by attracting equity control. Use of leverage to improve the profitability of a business. Achievement of an investment ...

Actual price paid for property when it was acquired. The original cost might apply to a piece of jewelry, to a piece of equipment, or to a building. For insurance purposes, original cost is ...

Ratio of the insurance company's investment in common stocks dividend to its adjusted surplus account. This ratio shows how vulnerable the company's surplus is to the stock market ...

1957 federal law setting a limit on the liability of operators of nuclear facilities. The law, an amendment to the Atomic Energy Act of 1954, authorized establishment of private insurance ...

Professional designation earned after the successful completion of four national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as insurance ...

Popular Insurance Questions