Taking Care of Mom and Dad: What LTC Insurance Covers

LTC insurance pays for the kind of care needed for individuals who have a chronic illness or disability. It often covers the cost of custodial nursing care (nursing homes), but also provides coverage for home-based care, visiting nurses, chore services and respite care for daily caregivers who need time away from these difficult duties.

LTC insurance usually provides coverage for at least 12 consecutive months for medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance or personal care services, provided in 2002, that copayment was $101.50 per day for days 21 through 100 per benefit period.

a setting other than an acute care unit of a hospital, and includes group and individual policies.

This insurance normally provides a daily benefit (usually $50 to $250) following an elimination period. The elimination period is usually expressed as 30, 60 or 90 days, and serves as a "time deductible" during which no benefits are provided. Once the elimination period is satisfied and the daily benefits begin, they will be paid for the benefit period selected by the policyholder. Typical benefit periods range from one to five years.