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Please explain what a “long-term care” policy is.


A long-term care policy is insurance that protects you from falling through the cracks of the health-care system. Sometimes people, especially the elderly, are not altogether fit and healthy yet they’re not so ill that they require hospitalization or even regular care from a doctor.
Someone with an illness is probably covered by another form of insurance, such as Medicare or an employer-sponsored health plan. Anyone who’s well has no problem. Long-term care policies were created to help those in the middle who don’t need medical care but require help with life’s basic activities due to a chronic physical or mental impairment.
A typical long-term care policy goes into effect if the holder is expected to need substantial assistance, at home or perhaps in a nursing facility, for at least 90 days. The policy will pay a daily amount for up to a specified number of days, with both figures established when the policy is set up. Before it kicks in, however, there is often a fixed number of days for which the holder must pay for care. This serves the same function as a deductible in other types of insurance.
-Conrad de Aenlle