What Is Long-Term Care (LTC) Insurance

Long-term care (LTC) insurance is coverage purchased separately or as a rider on your life insurance policy. It provides nursing-home care, home-health care, and personal or adult daycare for individuals ages 65 or older or with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs, such as Medicaid.

A long-term care rider is a living benefit on a life insurance policy that lets you access a portion of the policy’s death benefit every month to pay for long-term care expenses. To exercise the benefits this rider offers, a medical professional will need to certify that the policyholder can’t perform at least two activities of daily living or that they need substantial supervision to protect their health and safety because of a cognitive impairment (such as Alzheimer’s or dementia).