©2022 NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS
TABLE OF CONTENTS
WHAT IS LONG-TERM CARE? ................................................................................................................................... 1
How Much Does Long-Term Care Cost? ............................................................................................................ 1
Nursing Home Costs ........................................................................................................................... 1
Assisted Living Facility Costs .............................................................................................................. 1
Home Care Costs................................................................................................................................ 1
How Might I Pay for Long-Term Care? ............................................................................................................... 2
Personal Resources ............................................................................................................................ 2
Medicare ........................................................................................................................................... 2
Medicare Supplement Insurance (Medigap) ...................................................................................... 2
Medicaid ............................................................................................................................................ 2
WILL I NEED OR USE LONG-TERM CARE? ................................................................................................................. 4
WHAT IS LONG-TERM CARE INSURANCE? ............................................................................................................... 5
Do I Need to Buy Long-Term Care Insurance? .................................................................................................. 5
What Types of Policies or Contracts Can I Buy that Provide Long-Term Care
Benefits or Coverage? ...................................................................................................................................... 6
Individual Policies ............................................................................................................................... 7
A Life Insurance Policy or Annuity Contract ....................................................................................... 7
A Hybrid/Combination Life Insurance Policy ...................................................................................... 7
Policies from Your Employer .............................................................................................................. 8
Policies from Federal or State Government ....................................................................................... 8
Association Policies ........................................................................................................................... 9
Policies Sponsored by Continuing Care Retirement Communities ..................................................... 9
Long-Term Care Insurance Partnership Policies .................................................................................. 9
Tax-Qualified Policies ....................................................................................................................... 10
HOW LONG-TERM CARE BENEFITS ARE PAID ......................................................................................................... 13
Shared Care .................................................................................................................................................... 13
What Services Are Covered? ......................................................................................................................... 13
Where Services Are Covered? ....................................................................................................................... 14
What Services Aren’t Covered? ..................................................................................................................... 14
How Much Coverage Will I Have? .................................................................................................................. 15
When Will I Be Eligible for Benefits? .............................................................................................................. 16
Types of Benefit Triggers ................................................................................................................................ 16
When Benefits Start (Elimination Period) ...................................................................................................... 17
Inflation Protection ........................................................................................................................................ 18
Third-Party Notice ......................................................................................................................................... 19
Other Long-Term Care Insurance Policy Options I Might Choose ................................................................... 19
What If I Can’t Afford the Premiums After I Buy the Policy? .......................................................................... 20
Will My Health Affect My Ability to Buy a Policy? .......................................................................................... 21
What Happens If I Have Preexisting Conditions? ........................................................................................... 22
Can I Renew My Long-Term Care Insurance Policy? ....................................................................................... 22
HOW MUCH DO LONG-TERM CARE INSURANCE POLICIES COST? ........................................................................... 23
What Options Do I Have to Pay the Premiums on the Policy? ........................................................................ 25
If I Already Own a Policy, Should I Switch or Upgrade? .................................................................................. 26
WHAT SHOPPING TIPS SHOULD I KEEP IN MIND? ................................................................................................. 27