A policy which provides payment for a portion or all of the cost of certain long-term care facilities such as skilled or intermediate nursing homes.
***
UK: Contributes to the cost of residential or home care for persons unable to perform the ‘activities of daily life’ because of a disability or age-related condition. Pre-funded insurance plans are available for the healthy with no immediate care needs. Immediate plans are arranged only when care is actually needed and this often involves the purchase of an immediate care annuity payable directly tax-free to the host care home.
***
MEDICAL,USA: Type of private insurance policy to help pay for some skilled, intermediate, custodial, and long-term medical and nonmedical care such as help with activities of daily living. Because Medicare and Medigap policies generally do not pay for long-term care, this type of insurance policy may help provide coverage for long-term care that the individual may need in the future. Some long-term care insurance policies offer tax benefits called tax-qualified policies . This type of insurance may be expensive, and coverage may be denied on health status or age.