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What Does LTC Insurance Cover

Long-term care insurance provides benefits for prescribed long-term care, meaning a licensed health care practitioner must verify or diagnose a person's need for long-term care, which can include nursing home, assisted daily living, adult day care, and/or home health care services. You can buy a policy that is tailored to your needs and individual situation, but be aware that the more options you choose, the higher the cost of the policy and the higher your premiums will be.

All policies sold in Minnesota must contain the following consumer protection features:

  • At least one year of nursing home or home health care coverage, including intermediate and custodial care. Health care benefits cannot be limited to "skilled care" only.

  • Coverage for Alzheimer's disease.

  • An inflation protection option.

  • An "outline of coverage" that clearly describes a policy's benefits, limitations, and exclusions, allowing you to compare the coverage with that of other providers. This must be given to you at the time of initial solicitation and before you complete the application for insurance.

  • If you purchase a policy that was approved in 2002 or later, it will contain "rate stabilization" provisions that are intended to make rate increases less likely.

  • If you purchase a "qualified" policy you must be given a long-term care insurance "shopper's guide" that helps you decide whether long-term care insurance is appropriate for you.

  • A "guaranteed renewable" clause, meaning the policy cannot be cancelled, non-renewed, or otherwise terminated except for non-payment of premium.

  • A statement that you have the right to return the policy for any reason within 30 days after purchase and to receive a full premium refund.