Planning Education
How Long-Term Care Insurance Works
Long-term care insurance pays a daily or monthly benefit once you need help with a set number of activities of daily living (like bathing, dressing, or eating). You can use the benefit for in-home care, assisted living, or a nursing facility. Traditional and hybrid policies work differently, and understanding the mechanics helps you choose well.
Benefit triggers and waiting periods
Most policies begin paying when you need help with two or more daily activities or have a cognitive impairment, after a short waiting (elimination) period. The policy then pays up to its daily or monthly limit for the care you choose.
Traditional vs. hybrid policies
Traditional policies maximize care coverage per dollar but premiums can rise. Hybrid life/LTC policies guarantee a payout — care benefit or death benefit — and lock premiums, at a higher cost. We compare both for your goals. Product availability and rates vary.
Questions, answered
What triggers long-term care insurance benefits?
Typically, needing help with two or more activities of daily living, or a cognitive impairment such as dementia, after a short elimination period. Specifics vary by policy.
Do long-term care premiums increase?
Traditional policy premiums can increase over time, while many hybrid life/LTC policies lock premiums. We explain the trade-offs so there are no surprises.
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