Long Term Care

Long Term Care At A Glance

What is Long Term Care?

Any type of extended chronic care that is needed due to an illness or an injury.

Where is care provided and what is the cost?

Home Care                                                               $24.00 per hour on average

Adult Day Care                                                         $62.00 per day

Assisted Living Care                                              $38,000-$72,000 per year

Nursing Home Care                                               $75,000-$110,000 per year

What does LTC Insurance typically cover?

Built in Benefits:                                                         

  • Home health aides and personal care attendants
  • Skilled Services (Nursing care, physical, occupational, respiratory therapy)
  • Homemaker Services (Assist with meal preparation, laundry, cleaning)
  • Home modifications (Ramps, lifts, supportive equipment)
  • Adult day care (“Day out” program of social and health-related service)
  • Assisted living communities
  • Nursing home facilities
  • Respite care (This gives your informal caregivers a rest or a break)
  • Hospice care (End of life care that can be provided in your home or in a facility)
  • Premium Waiver (Premium payments are waived once you have completed your elimination period and are receiving payment benefits)
  • Caregiver training (Friends and family members can be trained to help care for you in your home).
  • Geriatric care manager benefits (Someone to help you navigate the maze of care options)

Optional Benefits:

  • Shared care – If you don’t use all your benefits – they transfer to your spouse/partner.
  • Paid-up Survivorship
  • Restoration of benefits
  • Non-forfeiture of benefits
  • Death benefit – unused benefits pass on to heirs


These are just some of the benefits

included in a long term care policy.

Each policy is tailored to meet your needs

and fit into your budget


How would I go on claim?

Your doctor will certify that you require assistance with 2 of the 6 activities of daily living (bathing, eating, dressing, toileting, continence or transferring)


That you have a cognitive impairment

It is between you, your family and your doctor to decide the best place to receive care.


Four Factors to Plan Design

  1.  Benefit Amount-How much money you will need daily or monthly for care. This amount could range from $1,500 per month to $6,000 per month.
  2.  Benefit Period-How long you would like your policy to last. You can choose a policy that will provide 2, 3, 5, 10 years or unlimited lifetime benefits.
  3.  Elimination Period-The number of days you can pay out-of-pocket for care before your policy becomes effective. This could range from zero days to 365 days.
  4.  Inflation Option-Your benefit amount will increase according to your choice:  simple, compound or CPI based inflation.  This option is going to keep your policy as valuable at age 80 as it was when you purchased it at age 55.


Here’s an example:

Benefit amount of $6,000 per month purchased at age 55

Benefit period of 5 years

Inflation option of 5% compound

Beginning pool of benefits=$365,000 ($6,000 x 12 months x 5years)

In 10 years you will have a daily benefit of $9,400 per month.

($545,235 total pool of benefits)

In 20 years your daily benefit will have grown to $15,360 per month.

($888,130 total pool of benefits)


Payment Options are convenient according to your budget.  

You may choose monthly payments, including eft from your bank account, quarterly, semi-annually or annually.

Other payment options allow you to pay up in 10 years, pay to age 65, or reduce your payment at age 65.  You may also choose a single payment option.

Remember, you do not pay a premium while receiving benefits.


What discounts could I qualify for?

  • Up to 20%  for preferred health
  • Up to 40%  for spousal/partner discount
  • Up to 10% for increased elimination period
  • Up to 10% savings by applying before your next birthday
  • Up to 5% small business discount
  • Multi-family/policy discounts also available

At Longevity Planning we make sure you receive all the discounts that may be available to you.

There are also tax advantages to having long term care insurance.  Talk to your tax preparer regarding your qualifications for the various deductions.

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