Long-Term Care Insurance: What It Really Covers

Despite the common belief, long-term care insurance can do a lot more than pay for a nursing home.

Jul 13, 2014 at 9:38AM


Photo: Joanna Orpia

Long-term care insurance is a very popular way to prepare for expenses in the event you or your loved ones are unable to take care of yourselves for an extended period of time.

Unlike regular health insurance, long-term care insurance is designed to reimburse the policy holder for a set amount per day for a maximum time period determined by the policy. The policy will help pay for a variety of services in several different settings.

Even if you feel you are a completely healthy person, bear in mind that the average person requires three years of long-term care during their lifetime. Many people believe long-term care insurance is only for those who end up in nursing homes, but the reality is there is a lot of degrees of care the insurance will cover.

So, the benefits of long-term care insurance and how the benefits are paid might mean more to you than you think.

When long-term benefits begin
In order to receive long-term care benefits, two criteria must be met. You have to have a "trigger" and a certain amount of time has to pass after the trigger is identified.

A Benefit Trigger is the criteria the insurance company uses to determine if you need long-term care. This is usually definied by needing help with a certain number of Activities of Daily Living (ADLs).

Once the trigger occurs, a pre-determined amount of time must pass before benefits will begin, known as the "elimination period". In other words, this is the period of time that makes the need for care a "long-term" need.

For those who may be unfamiliar with long-term care insurance and what it covers, here is an overview of what the daily benefit amount can be applied toward. Maybe getting coverage now could be the right move for you.

How to get even more income during retirement
Long-Term Care and Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers