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Types of Long Term Care insurance and their Coverage.

Three types of policies and seven types of coverage. Tax benefits for policy holders.

Types of Insurance.

There are three types of Long Term Care insurance policies. These are:

Facilities only - This covers the expense of the seniors living in a nursing home or other care facility.

Home health care only - This covers the cost of the senior being taken care of in their current home by a care taker who comes to their home to help them with whatever they need to do.

Comprehensive policy - This combines coverage for those who need nursing home care and home health care. This is the most popular policy because most seniors choose to stay at their home with home health care and then go to a nursing home when they are too weak to live in their home.

Types of Coverage.

Long term health care insurance provides seven types of coverage to policy owners depending on what they need and their health status. The coverage types include the following:

Skilled Nursing Care - This is usually provided in a nursing home and the policy holder is provided with high level of medical care. This is usually for seniors who are dealing with severe illnesses or recovering from severe illnesses in the nursing home. This care is provided daily to the patient.

Intermediate Nursing Care - This is same as the Skilled nursing care but is for patients who are not very sick and who don't need the care every day. So they are provided medical care when they need it.

Custodial Care - this is care provided in a nursing home for people with illnesses like diabetes and other permanent diseases and are not able to take care of themselves in their homes. They are taken care of in the nursing home where their needs are met.

Assisted Living - This is usually done in buildings where the seniors live communally and are assisted with daily chores like cooking, laundry and other day to day chores.

Home Health Care- This is where the patient lives in their home but receives skilled nursing care and other help with their medical issues. This is for seniors who are not very weak and are able to live at least part time on their own.

Hospice Care - This is care provided to patients with terminal illnesses like cancer who need daily or sometimes weekly assistance. It is usually done at the patients home.

Adult Day Care - This is for people who need assistance at their home during the day and when there are no other adults in the house or the other adults work during the day. So a caregiver comes to the home during the day to help them and then leaves when the relatives come from work.

Today, most Long Term health Care insurance policies are Qualified which means the policy owners has certain tax exceptions. These tax advantages include the following:

The benefits received from the policy are tax free as long as they don't exceed a certain specified annual amount. This amount is set by the Government and the insurance company will tell you what it is.

The premiums you pay for this insurance can be deducted from your taxes as itemized medical expenses, again up to a certain amount.

The policy is Guarantee Renewable which means the policy holder has the right to continue to renew coverage as long as they pay their premiums. Their coverage cannot be cancelled for any other reason like deteriorating health status.


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