When can I claim on Long Term Care (LTC) Insurance?
An
Insurance Company offering LTC Insurance will normally pay out to a
policyholder based upon an inability to carry out some or all
Activities of Daily Living (ADLs)
Washing
Dressing
Using the toilet
Continence
Mobility
Eating and drinking
The claim and level of benefit may vary depending on how many
ADLs can be carried out or may be dependent on mental impairment.
In the event of a claim, the company will send you a questionnaire
in order to assess their liability. This will be completed
in part by yourself and in part by your own GP. It may also
be necessary
to arrange a report from an independent professional medical
specialist.
The benefits themselves are paid tax-free with some schemes
because they are paid direct to the care provider. Any shortfall
in the
costs will need to be met from other sources.
What is the difference between Long Term Care and Private Medical
Insurance?
The long term nature of the care required, coupled with the
distinction that is made between medical care and social or
domestic care,
is what distinguishes long term care from the conditions covered
by
private medical insurance.
The Financial Services Authority does not
regulate advice on private medical insurance and long term
care contracts, although it does regulate the financial soundness
of insurance companies.
Levels and bases of, and reliefs from, taxation are subject to change.
Tax reliefs referred to are those currently applying and their value will
depend on the circumstances of the individual investor.
