Long-Term Care Insurance

What long-term care insurance covers

Long-term care (LTC) insurance covers assistance with activities of daily living, like bathing or dressing, at home or in facilities, which regular health insurance excludes.

Policies range from traditional stand-alone plans to hybrid life-insurance combinations, typically costing $1,500 to $5,000 a year depending on your age and health.

How coverage works

• Benefit triggers: benefits usually activate when you need substantial help with at least two Activities of Daily Living (ADLs), or require supervision because of cognitive impairment.
• Elimination period: a waiting period, typically 30 to 90 days, applies before the policy begins reimbursing your expenses.
• Florida specifics: Florida participates in the Long-Term Care Partnership Program (LTCPP), which allows policyholders to protect a portion of their assets if they eventually need to apply for Medicaid.

Types of policies

• Traditional LTC: stand-alone policies that pay a daily or monthly amount over a set period, usually two to five years. Premiums are not always guaranteed and can increase over time.
• Hybrid (linked-benefit) policies: combine LTC with life insurance or an annuity. You pay a lump sum or fixed payments. If you need care, it pays out; if you pass away without using it, a death benefit is paid to your heirs.

Why consider it

While Medicaid covers these services, you typically have to spend down your assets to qualify. Medicare generally does not cover custodial, long-term care. Purchasing a policy protects your savings and gives you the freedom to choose where you receive care.

Long-term care insurance providers in Florida

Providers serving Florida residents include:

• Mutual of Omaha: highly recommended for stand-alone traditional LTC policies.
• Nationwide: known for policy customization and cash indemnity options.
• Northwestern Mutual: a top choice for couples seeking joint policies or multi-policy discounts.
• Bankers Life: offers specialized products such as SimpleChoice Standard, tailored for seniors.
• Lincoln Financial Group: offers the popular MoneyGuard hybrid policies, combining life insurance with long-term care.
• OneAmerica: a highly rated option for asset-based (hybrid) policies.

Further providers

• Sunshine Healthsunshinehealth.com
• AARP / New York Lifenylaarp.com
• Thriventthrivent.com

State resources and local guidance

Navigating LTC regulations and comparing rates in Florida can be complex. Consider these authoritative resources for planning:

• Florida Department of Financial Services: regulates insurance across the state and offers consumer guides through its Long-Term Care Overview.
• SHINE program: a Florida Department of Elder Affairs initiative that provides free, unbiased counseling on Medicare, Medicaid and LTC insurance.
• FloridaHealthFinder: use the Long-Term Care Guide to understand state-specific coverage, restrictions and assessment protocols like the CARES program.

This page is general information, not financial advice. We are not insurance agents and receive nothing from the providers listed.