Due to the increasing cases of people who need long term health care, long term care insurance products are now being sold all over the United States. There are companies that offer insurance products that may be subscribed to by patients beyond the pre-determined period of time.
Products like this offer assistance to holders including covering the costs that may be incurred during the long term care treatment. This insurance normally covers those that are not given assistance by other health assistance companies if you are already entitled to one. The following are some of the services which are covered by LTC insurance: respite care, hospice care, nursing home, adult day care, home care, and assisted living.
The acquisition of long term care insurance is easy if you could be proven eligible enough to avail of the benefits. Usually, there are policies implemented when applying for LTC insurance.
The two most common policies implemented are those in relation to an applicant’s income tax. First is the Tax Qualified (TQ) policy which is implemented to patients who: 1) will need home health care for a period not shorter than 90 days; 2) are incapacitated to perform two activities of daily living (ADL) like eating, dressing up, or using the comfort room. Under a TQ (tax qualified) policy, these benefits are non-taxable.
The second most common policy is called Non-Tax Qualified (NTQ). Under this policy, a medical necessity “trigger” should be included in the statement. This means that the patient’s needs for most medical assistance, for any reason, will be covered by the policy. The NTQ policy also requires only one disability from the holder to enjoy the benefits. If you’re a holder of this policy, and you’re unable to walk because of an injury or an ailment, you’re treatment should be covered entirely.
However, the US Department of Treasury has not made any clarifications as to the status of the benefits under this policy. Therefore, its taxability is open for further interpretations.
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