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Long-Term Care Insurance

This type of insurance was established in order to provide coverage for Home Health Care, Assisted Living, and Nursing Home Care. This typically is purchased between the ages of fifty-five through age seventy when the need for this type of care arises. There are several terms used in addressing levels of care as follows:

  • Skilled Nursing
  • Intermediate Care
  • Custodial Care

Skilled Nursing

this level of care requires 24 hour monitoring and surveillance of the patient and eventually moves to the next level of care which is referred to as Intermediate Care. A misconception exists that Medicare Insurance will cover long term care expenses. Generally speaking, Medicare will cover the first 100 days of "skilled nursing" care. Once the next level is reached, Medicare stops paying.

Immediate Care

This is the next level of care after "skilled care" is over. A need for 24 hour monitoring/care is not needed and the patient is expected to recover and be discharged in a relatively short period of time. Regardless of the time involved in recovery and length of stay in a facility, this level of care can be addressed possibly in the patients home. This type of care that does not require a nurse to administer medication etc., is not covered by health insurance or Medicare.

Custodial Care

Custodial Care – this level of care is not health related and is not covered by health insurance or Medicare. When considering Long Term Care Insurance coverage, you will want to get familiar with ADL’s (Activities of Daily Living). There are six as follows:

  • Bathing
  • Dressing
  • Transferring
  • Eating
  • Toileting
  • Cognitive Impairment

A Cognitive Impairment in itself can trigger Long Term Care Insurance eligibility for benefits. Other than this one ADL, two of the remaining five need to be met in order for a benefit to be paid.