YOU ASK:

Is long term care insurance life or health insurance?

WE ANSWER:

Long term care insurance is neither life nor health insurance. It is, as they say, "a league of its own".

Life insurance covers the life of the insured, that is, it will pay the policy amount upon the death of the insured.

Health insurance, on the other hand, will pay for medical expenses in the event that the insured gets sick or is injured in a covered accident. Generally, health insurance will only pay for expenses for the hospital. Once you have recovered enough to return to your home and will still need rehabilitative care or nursing care for an extended period of time, the health insurance will not pay for these expenses.

Meanwhile, long term care insurance will pay a daily, weekly or monthly benefit in the event that you need to be admitted in a long term care facility or receive the long term care at home.

The payments will cover fees for services that are aimed towards providing nursing and rehabilitative care, as well as in maintaining the insured's quality of life. It also pays for services that help the client go on with his daily activities, such as bathing and dressing, eating and going to the toilet. The payments will be based on whether the insured has obtained a disablement due to an accident or serious illness.

Long term care insurance is often associated with life insurance since you can buy life insurance that has a long term care component. When you buy this kind of policy, a portion of the policy's accumulated cash value will be earmarked towards paying for long term care, if this is needed. Any expenses paid towards long term care will be deducted from the proceeds that the beneficiaries will receive upon the death of the insured.

Life insurance is paid to the beneficiaries. Health insurance is usually paid to the hospital or to the medical providers. In some instances, the insured first pays and is reimbursed by the insurance company up to the maximum benefit limits specified in the policy. Long term care insurance benefits are paid to the insured either as a monthly/daily benefit or as a lump sum.

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