Long Term Care (LTC) Insurance

Long-Term Care Insurance (LTC) has become one of the most sought-after employee benefits. It generally refers to a broad range of medical, personal, and environmental services designed to assist individuals who have lost their ability to remain wholly independent in the community. It is usually provided for an extended period of time, normally more than 90 days.

Typically, the need for long-term care arises when physical or cognitive conditions impair a person’s ability to perform the basic activities of everyday life. Long-term care may be provided by family, friends or any number of health care professionals and can be divided into three levels: skilled care, intermediate care and custodial care.

Many people mistakenly think their health insurance or Medicare will pay for long-term care services. That is not the case, and long-term care services can be very expensive. Nursing home care averages more than $70,000 per year. Part-time, in-home care can cost more than $20,000 annually.

While long-term care needs can be devastating to employees, they affect employers as well. For example, an employee who is dealing with long-term care needs for a family member may experience an increase in absenteeism, lowered productivity and morale, and an inability to travel for business. Long-term care insurance helps the employee manage those needs more effectively.