Long Term Care Insurance provides benefits for care in nursing homes, alternate living facilities, community living facilities, hospitals and home care. The major reason for acquiring LTC is to avoid any support from family members and friends for care, and to assure that adequate care and choices will be available and affordable in times of need. Long Term Care Insurance pays a daily benefit in one's favor to help recover the costs of care. Benefit periods can be between 2-6 years or for lifetime. Daily benefit amounts are favored at time of purchase usually based on the prevailing costs of full-time care. The benefit can be increased annually with a simple interest calculation, or increased each year with a compound interest calculation. The biggest change we have seen is that we've managed to create a health care and long-term care system that can provide extensive care. That's the need of the day.
