Traditional Long-Term Care Insurance
This type of plan can best be compared to your car or homeowner’s policy.
You pay a premium and if, you never file a claim the insurance company keeps your money to pay the claims of others.
Coverage can be for facility care only or comprehensive.
Facility-only covers care in a nursing home or residential care, also called assisted living.
Comprehensive plans cover both facility and home care.
Premiums are based on your age, health and amount of plan benefits.
The younger you are, the less expensive premiums are.
Maximum issue age depends on the company but averages around 75.
The better your health, the less expensive premiums are.
Chronic illnesses like diabetes and arthritis will increase premiums or cause you to be uninsurable.
Premiums are also determined by the amount of daily benefit and the amount of total lifetime benefits.
Premiums for these plans can go up and many have.
You will want to consider these plans if you want to pay monthly rather than a one-time lump sum as with a hybrid plan.