Rarely has the financial service community seen interest in a specific form of protection explode as it has in terms of LTC or Long Term Care coverage.

Long-term care insurance (LTC or LTCI), is an insurance product which helps provide for the cost of long-term care beyond a predetermined period. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid.

Long-term care is a variety of services and supports to meet health or personal care needs over an extended period of time. Most long-term care is non-skilled personal care assistance, such as help performing everyday Activities of Daily Living (ADLs), which are:

·        Bathing,

·        Dressing,

·        Using the toilet,

·        Transferring (to or from bed or chair),

·        Caring for incontinence, and

·        Eating.

Long-term care insurance rates are determined by six main factors: the person's age, the daily (or monthly) benefit, how long the benefits pay, the elimination period, inflation protection, and the health rating (preferred, standard, sub-standard). Most companies will give couple's and multi-life discounts on individual policies. Some companies define “couples” not only to spouses, but also to two people who meet criteria for living together in a committed relationship and sharing basic living expenses.

Once a person purchases a policy, the language cannot be changed by the insurance company, and the policy usually is guaranteed renewable for life. It can never be canceled by the insurance company for health reasons, but can be canceled for non-payment.

Most benefits are paid on a reimbursement basis for which benefits are paid only for services provided.  A a few companies offer benefits on a per-diem basis where the daily maximum benefit is paid regardless of services provided.  This provision or rider is often available at a much higher premium rate.