Long Term Care Insurance
Long term care insurance provides you with benefits when you require assistance with the "Activities of Daily Living"(bathing, dressing, toileting, transferring, continence, and eating). The benefits of Home Care could be received while you are at home or in an Assisted Living Facility or Nursing Home.
One important feature of a long term care insurance contract is the Elimination Period. The elimination period is the length of time you must satisfy before you can begin receiving benefits. The elimination period could be 30, 60, 90, 180, 365, or even 730 days. Once you have satisfied your elimination period, then you can begin to receive benefits.
Benefits are paid as either reimbursement or indemnity. Under a reimbursement contract, you must submit the bills to the insurance company and they send you a check. Under an indemnity contract, the company sends you a monthly check for the entire benefit amount regardless of the expenses you incurred.
Benefits are usually payable for 2, 3, 4, 5, 6 years or lifetime. There could be more options depending on the carrier.
It is extremely important to sit down with a professional to review your long term care needs before purchasing a policy. You need to make sure that the coverage's stated in the policy are what you expect them to be and that you include important riders.