Guide to Long-Term Care (LOC) Insurance

Long-term care insurance is something many people don't think about, but it is important. It helps pay for long-term care that you might need if you were to have a stroke or other major health problem. This article will provide information on policy and benefit choices.

Types of Coverage - There are two types of coverage, comprehensive or facility care only

• Comprehensive - This type of coverage covers care in different types of settings, such as a hospital, nursing home or even your own home.




• Facility Care Only - This type of coverage covers only care that's provided in a nursing home or assisted-living facility. These policies cost less than comprehensive policies, and if people prefer to have care at home, they may only have the policy to reimburse them for care in a facility if and when they need it.

Benefit Choices - There are several types of benefits available

• Choose the daily benefit amount you want the policy to pay - You can select a daily benefit amount that you want the policy to pay. For example, if you chose a daily benefit amount of $100 per day, the policy would pay for expenses up to a maximum of $100 per day. Anything above that would be your responsibility. Most policies will let you choose from $50 per day to as much as $500 per day. Some policies let you select a monthly benefit amount, which gives you more flexibility on days you may need more care.




• Choose the lifetime benefit amount - Some policies will also give you the option to choose the amount of benefits you want to be paid over your lifetime, for example $100,000 or $300,000. Some policies also offer lifetime or unlimited coverage. You'll continue to receive benefits for as long as you need long-term care.

Settings - Most long-term care insurance policies allow for care in a variety of different settings. These settings include:

• Your home


• Adult day care centers


• Hospice care


• Respite care


• Assisted living facilities, aka residential care facilities or alternate care facilities


• Alzheimer's special care facilities


• Nursing homes