LTC Basics

Long-Term Care Offering

a service of d.b.a. Burling Insurance Group Long Term Care

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What is Long-Term Care (LTC) and Long-Term Care Insurance (LTCi)?


Long-term care (LTC) combines a broad range of ongoing care for people with:

  • Prolonged physical illnesses
  • Limitations in Activities of Daily Living (ADLs): transferring, continence, toileting, bathing, dressing, and eating
  • Cognitive disorders (such as Alzheimer’s disease)

There are three generally recognized types of long-term care:

  • Skilled Care is daily nursing and rehabilitative care under the supervision of skilled medical personnel such as registered nurses or professional therapists.
  • Intermediate Care is the same as skilled care, except it requires only intermittent or occasional nursing and rehabilitative care.
  • Custodial Care helps you perform activities of daily living, preferably at home. 95% of all nursing care is custodial.

A comprehensive long-term care insurance (LTCi) program covers a broad range of services including:

  • Home health care
  • Personal care
  • Homemaker services
  • Respite care
  • Care in an assisted living or local residential care facility
  • Nursing home care
  • Custodial care
  • Community-based care in an adult day care program
  • Hospice supplemental care

Obtain Your Own Long-Term Care Policy as Soon as Possible:

LTC Specialists recommend the purchase of an long-term care plan now.


  • Certain health conditions raise insurance premiums or may result in declined coverage or higher premiums for coverage.
  • Market conditions influence the cost of inflation protection.
  • Availability of carriers and products may change in your state.


Two Types of Long-Term Care

Traditional Long-Term Care

  • Provides long-term care benefits if needed.
  • Does not build cash value.
  • Initially, the premium is less expensive than asset-based LTC insurance.
  • Written only on individual lives. If health is compromised, coverage may be declined.
  • No death benefit. Usually no refund of premium to insured or beneficiaries.
  • Limited benefits. Usually the pool of money from which claim is drawn is a specified amount.
  • Payment option: pay premiums for life.
  • Guaranteed renewable. The policy is guaranteed to be renewed as long as the premiums are paid on time. The benefits nor the premium are guaranteed.
  • Created in the early 1980’s.

Asset-Based Long-Term Care

  • Provides long-term care benefits if needed.
  • Builds cash value.
  • Initially, the premium is more expensive than traditional LTC insurance.
  • Written on individual as well as joint lives.
  • Death benefit. Returns the premium invested magnified by a multiplier if no care is needed, or returns the death benefit less any claims.
  • Benefits can continue for the lifetime of the insured making the pool of money from which claim can be drawn unlimited.
  • Premiums can be lifetime/continuous pay or can be limited to a certain number of years, for example: single pay, 10-pay, 15-pay, etc. This feature allows a policy to be paid up if the limited pay option is chosen.
  • Guaranteed renewable and noncancellable as long as premiums are paid on time. Premiums and benefits are guaranteed to stay the same.
  • Created in the late 1980’s.
  • Live – The insured has access to the benefits if needed or to the cash value.
    Quit – The insured has a guaranteed surrender value if at any point and time he or she chooses to discontinue paying premiums and hence cancel the policy.
    Die – The beneficiaries receive the entire death benefit if no claim has been taken, or the death benefit less any claims. NOTE: In the case of Asset-Care on joint lives, the death benefit if any remains is not paid out until the 2nd insured passes away.


For more information:

NAIC Shopper’s Guide to Long Term Care Insurance: The National Association of Insurance Commissioners (NAIC) has written this guide to help you understand long-term care and the insurance options that can help you pay for long-term care services.

3in4 Essentials Guide: The 3in4 Need More campaign is dedicated to raising awareness of the importance of planning for ones long term care needs. Burling Insurance Group LTC’s Gail Steingold co-authored this guide to help educate the public on long-term care planning.

2017 Cost of Care Survey by Genworth: A comprehensive survey of long-term care service providers, conducted by Carescout®, comparing the costs affiliated with different types of care across the nation.

2016 Tax Guide by Genworth: A 2016 Tax Guide for Tax-Qualified LTCi to understand the deductibility of premiums.


If you have any questions, you may contact us at:

Direct: 312-977-0024

Fax: 312-977-0128