What exactly is Long Term Care? It is simply defined as care provided by another party for the benefit of those who are unable to care for themselves. It can include help with the very basic housekeeping chores such as cooking meals, paying bills and shopping. It almost always involves assistance with the most personal aspects of someone's life such as bathing, dressing, eating and transferring from one place to another. This care is usually for an extended period of time and requires supervision for a medical condition that can be managed but not cured. The ideal delivery for this care is in the individual's home for as long as possible so that they can be maintained in their community. It can also be recieved in an assisted living or nursing home facility.
So what exactly is the purpose of Long Term Care Insurance (LTCI)? LTCI provides a predictable, guaranteed stream of income that pays for the care and protects the family from financial hardship allowing them to maintain their way of living. For those individuals that do not have a Long Term Care Insurance policy, their care becomes self-funded and can (and often does) wipe out most of the nest egg that has been put away for college, vacations, retirement and any other dreams the family may have had. The government does not start to pay for an individual's long term care until their personal funds are spent down to a specific amount according to governement guidelines.
Long Term Care Insurance is a pro-active plan to protect and preserve the family from the consequences that providing this type of care brings.
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