A long term care claim does not need to be permanent for an insured to receive benefits from a policy. As noted in “Is it covered?”, life insurance with chronic illness riders will not provide coverage for services that are not permanent in nature.
True LTC policies (traditional and asset-based), cover both permanent and recoverable maladies.
Bob is in his mid 60’s and is an avid cyclist who receives a knee replacement. He receives skilled care in a facility for 60 days before returning home where 120 days of care is received. After that, rehabilitation services are no longer required. 10 years later, his arthritis is so extreme that he requires assistance with 2 of 6 activities of daily living which force him to enter an assisted living facility.
Molly, who is in her early 70s, injured her hip while on vacation – an accident that required a complete hip replacement. She required home health care for six month after which she was fully recovered and no other care was necessary. Nine years later, Molly is diagnosed with a severe cognitive impairment and she is placed in a nursing home.
In both of these hypothetical scenarios, Bob and Molly owned Asset-Care polices which provided guaranteed premiums, guaranteed LTC/Life insurance benefits, and unlimited lifetime coverage thanks to the election of the Continuation of Benefit Rider.
As these examples demonstrate, a malady does not need to be permanent to receive benefit and the benefits can be “turned on and off” as the insured’s health dictates.
Remember, in both instances, the policy providing LTC benefits was underwritten and issued prior to any claim.