Long Term Care insurance will require you or your spouse to meet certain requirements before benefits will be provided.  Eligibility requirements and policy terms may include some or all of the following:

• The inability to perform 2 to 3 specific “activities of daily living” without help.  These include bathing, dressing, eating, toileting, and “transferring”, or being able to move from place to place or between a bed and a chair.
• Cognitive impairment such as from a stroke, Alzheimer’s, or Parkinson’s disease.  It is important to note that other forms of mental incapacity may be excluded from the policy.
• Medical necessity, as deemed by a licensed medical doctor that long-term care is necessary.
• Some policies may require a hospital stay of at least 3 days before the benefits can be paid.
• A benefit period may range from two years to a lifetime, with higher premiums for longer length of coverage.
• The benefit can be paid on the first day of care or after a “waiting period”.  Premiums are lower if you opt to pay for care yourself during the “waiting period”.
• Inflation protection that compounds benefits at up to 5% per year.  (This is especially helpful if you are planning ahead).
• Guaranteed renewable policies must be renewed by the insurance company, although premiums can go up if they are increased for an entire class of policyholders.
• Waiver of premium, so that no further premiums are required once you start to receive benefits.
• Third-party notification requirement will notify a listed relative, friend, or professional advisor if the policyholder forgets or misses a payment