May 19, 2011
Long-Term Care (LTC) Insurance
Why You Should Consider LTC Coverage
Long-term care (LTC) plans provide insurance coverage for extended care scenarios typically uncovered by Medicare or Medicaid. There are several LTC providers in the U.S. offering differing levels of coverage at various prices. While benefits vary from plan to plan, LTC companies often provide some level of coverage for hospice care, Alzheimer's facilities, assisted living facilities, and home care. Because benefits are not standardized like most state's Medigap plans, it is extremely important for consumers to review benefit details among plans before enrolling.
The Centers for Medicare & Medicaid Services (CMS) estimates that around 70% of people age 65 or older will require some form of long-term care during their lives. Waiting until retirement to enroll in a LTC plan can lead to higher premiums.
LTC plans fall into two categories: Tax Qualified (TQ) and Non-Tax Qualified (NTQ). Benefits in TQ plans are not subject to taxation while benefits in NTQ plans are potentially taxable.
Our parent company, eHealth, provides assistance with long-term care insurance coverage.
