Long Term Care Insurance

Long Term Care Insurance

General Investment Features

• This is not an investment product.

• An insurance policy that protects the owner’s assets in the event they incur expenses for long term care, such as a nursing home or prolonged at-home care.

• Premiums are based on the insured’s age at the time they purchase the policy.

• Important Terms to Understand:

- Skilled Care—Refers to 24 hour a day care from medical professionals.

- Intermediate Care—Refers to care by medical staff but not as intense as skilled care.

- Custodial Care—Refers to the type of assisted care you may receive in a nursing home or home care where the patient needs assistance to do daily activities such as bathing or eating.

• Policy Considerations:

- Daily Benefit Amount—This is the amount that is paid to the provider for the care of the insured. The higher the daily benefit, the higher the premium paid.

- Benefit Period—This refers to the number of days of care the policy will provide. The average stay in a nursing home is 2 ½ years. The length of coverage afforded determines premiums.

- Home Health Care—Many policies provide coverage for care provided at home, adult day care facilities, or assisted living. Typically this is a percentage of the Daily Benefit Amount.

- Inflation Protection—This provision offers the insured the option to increase the Daily Benefit Amount each year while their premiums remain level. This increase is typically 5% annually.

- Elimination Period—This is amount of time the insured will wait before benefits begin. Typically this ranges from 0 to 100 days. The longer the waiting period, the lower the premium. Consequently, many insureds opt to self-insure for shorter stays.

- Benefit Triggers—This refers to provisions in the contract that will start the benefit payments.