Long term insurance, more commonly long term care insurance, is an insurance policy that people take out to cover any costs that they might incur to live in their old age. This could include costs of assisted living homes or nursing homes or costs such as needing special geriatric equipment. The insurance is a way to provide for these extremely high expenses, especially at a time when the person is retired and out of any option of earning a regular income as in younger days.
So, what does long term care insurance cover and what does it not? Here are some points.
This type of insurance is basically sought to help people with their daily living activities when they grow older. There are 6 such activities defined by insurance companies. They suggest that if a person is not able to carry out the 6 tasks of (i) eating (ii) using the bathroom (iii) wearing clothes (iv) movement (v) maintaining self-hygiene and (vi) being continent, then any expenses that are incurred on these counts can be covered by the long term insurance policies.
If the individual needs special care and accommodation, such as needing to be put into a special care home for the aged, then those expenses are covered by such policies.
Special nursing help that may need to be hired at the residence of the person is also covered. This includes nurses, attendants, servants, caretakers and the like. The only important condition is that the person employed must perform only those tasks that are needed to assist the person with the daily living activities mentioned above.