What is Long-Term Care?
Long-Term Care refers to a variety of services designed to help people perform the functions of day-to-day living to help them remain independent. Some long-term care is aimed at providing help with day-to-day activities for people with chronic illness, or cognitive impairment, such as dementia. Other long-term care services may be rehabilitative, helping someone regain function after a serious injury.
As a result of preventative care and medical advances people are living longer, therefore, the greater the chances are that chronic conditions may develop, resulting in an increased need for assistance with every day activities. In fact, one out of every three people will need some form of long-term care services throughout the course of their lives.
Where Can Long-Term Care Services Be Received?
Many people think that long-term care refers only to services provided in a nursing home. It is much more than that--Long-term care services can be provided by nurses, certified nursing assistants, physical, occupational and respiratory therapists, home health aides and homemaker services. It is provided in many different settings such as; at home, an assisted living facility, a nursing home, an adult day care center, a hospice facility or hospice services provided at home. Long term care services may also be received in a continuing care retirement community. This type of facility usually provides housing, services and various levels of long-term care services when needed, in one location.
The Triggers for Tax Qualified Long-Term Care Policies
The insurance industry has specific definitions that they use involving certain activities and functions. These are referred to as Activities of Daily Living (ADL's), there are 6 ADL's, they are as follows: Dressing, Bathing, Transferring (moving in or out of a bed or chair), Toileting, Eating, and Continence. The insured must be unable to perform 2 out of 6 ADL's or have severe cognitive impairment which has been certified by a licensed health care practitioner.
Long-term care policies issued prior to 1996 may contain slightly different trigger language. These policies have been "grandfathered" and are now considered tax-qualified.
