As part of our daily life, we need to do these activities on a regular basis – transferring, toileting, continence, bathing, dressing and eating. For any reason if we are not able to independently do 2 of these activities for an extended period of time (generally 90 days), we qualify for Long Term Care. Cognitive impairment could be another reason for someone to qualify for Long Term Care.
Generally speaking Long Term Care policies are of the following types:
Standalone LTC: You either use (if the person qualifies and uses LTC benefits) or loose (if the person passes away before using the LTC) benefits. Generally tends to be the most affordable LTC policy.
Hybrid policies: These policies are primarily designed for LTC and have some residual death benefit, in case the person expires without using the LTC.
LTC as a rider on Life Insurance or Annuity Contracts: In these policies, an individual can get benefit – less than, equal to or greater then the face amount of the policies, based on how it is structured.