Long term care insurance pays for a variety of services you need if you are unable to care for yourself because of an illness or you have cognitive impairment. These services can be provided in a nursing home, an alternate care facility such as an Alzheimer’s Unit, or in a community-based setting such as an adult day care center or your own home.
The plan begins to pay 90 days after you are certified by a licensed health practitioner to be either cognitively impaired, or unable to perform two out of six activities of daily living (ADL). These activities are bathing, continence, dressing, eating, toileting, and transferring. Typically, the policies pay a set amount per month, such as $3,000 or $4,000, for as long as the person needs nursing care, or for a shorter benefit period such as two, three, or six years.