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The Life Insurance Blog

Helping millions of Americans become educated
in making decisions about their life insurance needs


Long Term Care - What Exactly Does it Cover?

Jan 27, 2014 8:22:00 AM

There has been plenty of talk recently about long term care (LTC) in the media. From the rising cost of LTC, to the growing need for coverage, it can be difficult to understand it all. That is precisely why we’re devoting today’s post to long term care insurance and what it means for you and your loved ones.

describe the imageWhat is Long Term Care Insurance?

Unlike traditional health insurance, long term care insurance is designed to help cover the cost of personal care needs later in life. Most LTC policies do not include coverage for medical care; instead, they help cover the cost of daily care, sometime referred to as Activities of Daily Life (ADLs). This typically includes activities such as:

  • Help with dressing
  • Help with eating
  • Using the restroom
  • Help with bathing 
  • Care for incontinence 
  • Transferring to and from a bed or a chair

Long term care also typically covers assistance with everyday tasks, known as Instrumental Activities of Daily Living (IADLs). IADLs generally include:

  • Help with taking medications
  • Caring for pets
  • Help with basic housework
  • Assistance managing money
  • Help with meal preparations
  • Shopping for basic needs (grocery and clothes)

The Rising Cost of LTC

The out of pocket costs one faces covering ADLs and IADLs can be exorbitant. This is precisely why so many Americans are choosing to invest in long term care insurance. There have, however, been major hikes in LTC premiums in recent years as a direct result of rising healthcare costs. Many aging Americans and their adult children are seeking more affordable alternatives including universal life combination products. Rather than purchasing long term care insurance as a standalone policy, some are instead purchasing LTC as a rider on a universal life policy.

Learn more about UL/LTC combo products

As you and your loved ones plan for the future, we encourage you to account for the cost of long term care. How will you cover it? If you aren’t prepared, who stands to face the financial burden? If you would like to learn more about universal life combo products, please contact IntelliQuote today! Allow us to explain your options and determine if a combo plan is right for you.

Would you like more tips and insight designed to help you plan for the future? Follow our blog! Here we address topics that impact your family’s financial health. While there, be sure and read these recent related posts:

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