CLHIA-ACCAP - Consumer Information

A guide to long-term care insurance

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Page 5 of 14

3 THE BASICS Essentially, long-term care insurance provides financial protection should you become unable to care for yourself because of a chronic illness; disability; cognitive impairment, such as dementia; or other age-related conditions preventing you from managing a number of the activities of daily living without assistance. It can cover stays in nursing homes and chronic care facilities or the services of a caregiver in your own home. Generally speaking, there are two types of long-term care insurance plans: • One reimburses you for eligible expenses that are outlined in your plan (such as homemaking or private nursing services) that you may incur on a given day, up to a pre-determined maximum. • The other is an incomestyle plan, which offers a pre-determined monthly benefit amount. With an income-style plan, the regular benefit you receive (e.g., monthly, weekly) can be spent any way you choose. You can use it to help finance your care in a residential facility, for in-home care services or to pay someone in your own family to look after you. Most plans include a waiting period. This means once you qualify for benefits, you must wait a specified period of time before your benefits will be payable. Common waiting periods are between 30-90 days. What is long-term care insurance? TIP: You may want to consider including long-term care insurance in your estate plan- ning with the intention of helping you stay in your own home for as long as possible. TIP: Ask about the length of time you must pay premiums and whether they are waived or discontinued when you make a claim and are receiving benefits.

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