A traditional long-term care insurance plan requires regular premium payments. The insurer responds to the claim when care is needed per the policy declarations.
Long-term care insurance plans provide various coverages. While some offer in-home or nursing facility care coverage, policies typically have a daily or monthly coverage limit up to the policy’s lifetime limit.
Many long-term care policies allow the insured person to become eligible for coverage when they suffer from severe cognitive impairment or can no longer independently perform a set number of activities of daily living. There’s typically a waiting period before long-term care coverage begins. During this time, the insured person pays for the costs of their care out of pocket.
When coverage begins, premiums are typically waived. However, the coverage may lapse if you fail to make premium payments as promised before filing a claim.
Long-term care insurance may limit its covered conditions. For example, war injuries, drug addiction or alcoholism leading to the need for specialized medical care may be excluded.