Long Term Care Insurance Policies By Type
Long Term Care Insurance Policies
Long term care insurance (LTCI) policies are a little different than other types of health insurance. Health insurance 
usually covers medical services in case a covered person is sick or injured. LTCI, on the other hand, helps provide nursing care in case a person cannot perform the “activities of daily living” or other qualifications, as specified in a particular policy.
LTCI is meant to provide nursing care. That could be in a nursing home, assisted living facility, or home health care. Some even help with the costs of care that are provided by a family member. You need to look at the specific policy that you are considering to see what it covers. Some may only cover nursing homes, for example, while others allow more flexibility in determining how that care will be taken. You could learn more about the need for long term care insurance.
Tax Qualified vs Non-Tax Qualifed LTCI
If you are shopping for LTCI, you probably want to be aware that some long term care insurance policies are tax qualified. That means that the premiums could be deducted from your federal (and possibly state) income reporting when you prepare tax returns. Non-tax qualifed policies cannot be used as deductions. In addition, there is some question about benefits being taxible. Tax qualifed plans have tax free benefits.
So why would anybody choose a non-tax qualified (NTQ) plan?
Well, the government requires these to trigger benefits if a person cannot perform the activities of daily living for a specified waiting period. Non-tax qualified policies could have a less strict requirement to trigger benefits. They may just need a doctor to confirm that there is a medical necessity. In addition, a NTQ policy may not have as long of a qualified period.
There is no question that tax qualified long term care insurance policies have become much more popular because the provide the immediate benefit of a tax deduction.
Find Long Term Care Insurance Policies
You can find out how much long term care insurance policies cost with our safe, fast, and free online quote forms. You simply need to enter your basic information, like your zip code and age, one time. In return, LTCI companies wil compete for your business.
Before you sign off on anything, make sure you you understand the advantages and disadvantages of the particular plan you choose.
Benefits of LTCI
People have different reasons for buying a policy, but many just want to plan for the possibility of needing expensive nursing care at some point. They do want their family to have this burden, or they want to make sure that their assets are protected. Since nursing care could cost thousands of dollars a month, it is easy to see how this cost could run through a lifetime of savings very quickly.
Keep in mind, that policiesa differ. Some may pay the whole amount, some may pay a portion, or others may specifiy a daily rate they will cover – and it is up to the covered person to either shop around or paythe difference.
There are also alternatives to long term care insurance.
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