What is long-term care (LTC)? LTC insurance provides
financial aid for covered individuals who need medical, personal,
custodial, and social services during long illnesses and disabilities.
LTC includes an array of services ranging from nursing home care,
skilled home health care, adult day care, unskilled home personal
care, and respite care. Alternatives to group LTC insurance for paying
or providing for these services include individual policies, personal
savings, accelerated life insurance benefits, Medicare and Medicaid,
and care by family members. However, all these alternatives have drawbacks.
For example, such alternatives may be expensive (individual policies
and personal savings), provide limited coverage (Medicare), be open
only to individuals with extremely limited financial resources (Medicaid),
be available only to terminal individuals (accelerated life insurance),
and be an extreme physical and psychological drain (family member
assistance). Attempting to juggle these various alternatives puts
a strain on active employees and results in indirect costs to employers
because of reduced efficiency and absenteeism, increased healthcare
costs, and higher turnover.
Summary for [Your State]