Long Term Care Insurance Policies Advantages Could pay substantially if insured meets policy requirements. Premiums could be tax deductible. Must cover Alzheimer s disease, or any other mental or nervous disorder of organic origin. May exclude coverage for specific conditions like mental illness and nervous disorders. Stringent health underwriting, which means the company can turn an individual down at application if their health is bad.
Premiums tend to be very expensive, especially at older age.
Benefits may be taxable. In Utah, policies are required to cover custodial care, which is when the policyholder has lost the ability to perform certain activities of daily living such as bathing, dressing, transferring, continence, toileting, and feeding. Policies can not exclude Alzheimer s disease, or any other mental or nervous disorder of organic origin. Policies must be guaranteed renewable in Utah. This means that the company will not cancel the plan and the plan will remain in effect as long as the insured pays the premiums on time.