Individuals who hold long-term care insurance are reimbursed for the cost of services that assist them with the activities of daily living. Long-term care insurance reimbursement payments are set to a specific limit. Several criteria are established that determine the cost of the long-term care insurance for each individual policy holder: the age at which an individual purchases long-term insurance, the maximum amount per day the policy will pay, the maximum duration in days or years a policy will continue paying and any optional benefits. A long-term care insurance policy also figures in the lifetime amount a policy will pay according to the maximum amount per day multiplied by the number of days.

Long-term care insurance covers a range of services designed to support aging persons. Seniors in assisted living centers, adult day care, nursing homes and hospice care are eligible for long-term care insurance coverage. In-home care, respite care, hospice care are also services where costs are reimbursed by long-term care insurance policies. Services that aid those with progressive conditions (like those who seek comfort in Alzheimer’s centers) are covered by long-term care insurance.

Long-term care insurance is most affordable when individuals purchase policies before the age of 60. Premiums increase for those aged 60 and older, due to age and the consequential likelihood of the development of chronic health conditions. Plus, long-term care insurance can be denied, especially in persons over the age of 70.

In fact, insurance companies generally do not sell long-term care insurance to those over age 84. In the rare event an insurance company does offer long-term care policies to older individuals, the cost of premiums will be extremely high.

Insurance companies do sell long-term care insurance to seniors with pre-existing conditions. A pre-existing condition is described as an illness or symptoms of a disease for which an individual receives medical treatment or advice prior to applying for long-term care insurance.

Pre-existing condition periods may be applicable, meaning long-term care benefits may not go into effect for a period of six months if the insurance payments are for paying for long-term care related to that pre-existing condition. A few insurance companies may have no pre-existing condition periods or may stipulate longer periods in the policy.

An elimination period is considered the time between when an illness or injury starts and receiving benefits commences. The elimination period is also known as a waiting or qualifying period. Typically, policyholders must pay for services during this time.

Ninety-day elimination periods are common. Elimination periods longer than 90 days are oftentimes more cost-effective, but they add increased risk to the policyholder.

Long-term care insurance premiums are tax deductible, provided certain qualifications are met. These criteria include that taxpayers’ premiums must exceed ten percent of the insured’s adjusted gross income or ten percent for taxpayers older than 65.

Premiums are deducted for the policyholder, spouses and dependents. Limits are enforced as to how much may be deducted, which depends on the policyholder’s age at the end of each year. For instance, those who are aged 70 and over at the close of the year can deduct, as a maximum, $5110. In contrast, policyholders age 40 and under may deduct $410 for the year.