Long-Term Care (LTC) Insurance
Definition of 'Long-Term Care (LTC) Insurance'
There are two main types of LTC insurance:
* Traditional LTC insurance: This type of policy provides a set amount of money each month to help pay for long-term care expenses. The amount of money you receive each month is based on the type of policy you choose and your age when you purchase the policy.
* Hybrid LTC insurance: This type of policy combines features of traditional LTC insurance with features of a life insurance policy. With a hybrid LTC insurance policy, you can choose to receive a monthly payment for long-term care expenses or you can choose to receive a lump-sum payment upon your death.
The cost of LTC insurance varies depending on the type of policy you choose, your age when you purchase the policy, and your health status. It is important to shop around and compare different policies before you purchase a LTC insurance policy.
If you are considering purchasing a LTC insurance policy, there are a few things you should keep in mind:
* The average cost of a year of nursing home care is over $100,000.
* The average length of stay in a nursing home is over 2 years.
* Medicare does not cover long-term care costs.
* Medicaid may cover long-term care costs, but you may have to meet certain financial requirements to qualify.
If you are not sure whether or not you need a LTC insurance policy, you should talk to your financial advisor.
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