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What Types of Care Do Long-Term Care Insurance Policies Cover?

People who have a chronic medical condition, disability or cognitive impairment (such as Alzheimer's) may need long-term care services to function in daily life. These services may include both medical services and help with the activities of daily living, such as dressing and bathing. Long-term care insurance polices vary in what they cover, how much they cover for how long and where they cover services.

  1. Types

    • The two types of long-term care insurance policy are comprehensive and facility. A facility policy pays only for care in a nursing home or assisted living facility. A comprehensive policy covers services at home, in community-based programs and in facilities that offer long-term care. Because many people prefer to stay in their homes as long as possible, most policies are comprehensive. However, facility policies are a less expensive option for people who have family or friends who can provide home care.

    Locations

    • A comprehensive long-term care policy covers care in the following locations: your home, adult day health care centers, hospice, assisted living facilities, Alzheimer's special care facilities and nursing homes. The policy also covers respite care, temporary help to allow an unpaid caregiver to take a break.

    In-Home Care

    • For in-home care, long-term care insurance typically covers skilled nursing care; occupational, speech, physical and rehabilitation therapy; and help with personal care, such as bathing and dressing. Many policies also cover services such as meal preparation or housekeeping, if needed in conjunction with personal care help.

    What's Not Covered

    • Long-term care policies do not pay for items provided only for your comfort or convenience, such as having a television in your nursing home room. Policies also do not cover care or services unrelated to the needs of functioning in daily life, such as hospital stays or prescription medications.

    Benefits

    • When you buy a long-term care insurance policy, you can choose the level of benefits. For a daily benefit amount, you can usually choose between $50 and $500 a day. You can choose the benefit period, commonly one to five years, or a lifetime benefit. You can choose the elimination period, which is how long you wait after needing care for the policy to start covering expenses, typically 30, 60 or 90 days. Your choice of benefits, along with your age, are primary determinants of the premium for a long-term care policy.

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