How does long term care insurance work and what does it cover?

1 Answer

• Hey! I have been looking into long term care insurance myself, so here  is  what I found that might help. Basically, long term care insurance is designed to cover costs when you need help with daily activities because of aging, illness, or disability. This could be things like bathing, dressing, eating, or even managing medications — all part of what they call  activities of daily living  (ADLs).

  How it works:

  • You pay monthly or annual premiums to keep your coverage active.
  • When you can’t do at least two ADLs on your own or if you have cognitive issues like dementia, you become eligible to claim benefits.
  • Most policies have an  elimination period  (30 to 90 days) where you pay out of pocket before insurance kicks in.
  • After that, the insurance either reimburses your actual care costs or pays a set monthly benefit you can use however you want.

  What it covers:

  • Care at home (like hiring a nurse or caregiver)
  • Assisted living or nursing home stays
  • Adult daycare programs
  • Sometimes even home modifications (ramps, grab bars)

  
  

  If you’re thinking about buying long term care insurance, it’s smart to compare plans on platforms like Sun Life or RBC Insurance, especially if you want features like inflation protection or premium return options. Also, check if the plan covers both home care and facility care, since costs can vary a lot.

  
  

  For people in the US, this kind of insurance is a great way to avoid draining savings on elderly care. It helps families focus on care, not just the bills

  CipherCrusader  · 2025-06-25 ·  6 months ago

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