The Benefits And Limitations Of Traditional Long Term Care Insurance.

By Rick Law Elder Care Attorney in the Western suburbs of Chicago, IL

When planning for the unexpected, long-term care insurance should not be overlooked.  This type of protection should be considered not only for its ability to pay for care services, but more so to protect and preserve assets.

Long-term care insurance protects assets, avoids dependency on others and retains the insured person’s freedom of choice. It is something that everyone needs to consider in the overall asset protection plan.

The benefits of owning a long-term care insurance policy include:

  • Asset and estate preservation
  • Independence and integrity
  • Flexibility and choice
  • Easier access to care

Long-term care insurance can mean the difference between choosing the type of care that you desire and deserve, or being forced to spend down assets in order to qualify for Medicaid.

Over the years there have been many changes and upgrades to long-term care insurance policies. However, at its most basic level, the design of a long-term care plan follows several parameters, and these factors also help to determine the premium cost of the policy.

These factors include:

  • Applicant’s age
  • Dollar amount of coverage
  • Inflation Protection
  • Elimination Period
  • Duration of Benefits

Even though an individual may have a long-term care insurance policy, there are certain requirements that must be met in order to trigger the benefits from a plan.

Unlike older policies, however, in most cases no prior hospitalization is required, as is with Medicare skilled nursing home coverage. Most long-term care insurance policies will require that the policyholder either:

  • Needs continual assistance with a certain number of activities of daily living (ADL), or
  • Needs continual supervision due to a cognitive impairment

Activities of daily living (ADLs) include dressing, toileting, continence, transferring, bathing and feeding. “Cognitive impairment” is defined as the deterioration or loss of intellectual capacity that is evidenced by memory loss, disorientation and/or the ability to
reason.  It is often caused by Alzheimer’s disease or similar forms of senility or irreversible dementia. When a person is unsafe in a normal environment, he/she is in need of full time assistance in a protected environment.

If your loved one has memory problems and you’re afraid of the consequences that may bring, give our office a call today at 800-310-3100.  Your first consultation is absolutely free.  We’ll let you know what steps you need to take, right now, to protect yourself and your family.  Call now.


Rick L. Law, Attorney, Estate Planner for Retirees.

Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine,, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future.  Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care.  Appointments available in Chicago, Aurora, Oak Brook, Schaumburg, and Joliet.  Call 800-310-3100 for your free consultation now!

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