Insurance that covers the cost of extended care services that are not covered by regular health insurance, such as assistance with daily activities like bathing, dressing, and eating. It can pay for care in a nursing home, assisted living facility, or your own home.
Related Terms
Premium
The amount you pay to an insurance company to maintain your coverage, typically billed monthly, quarterly, or annually. Premiums are determined by factors such as risk level, coverage amount, deductible, location, and claims history.
Elimination Period
The waiting period between when a disability begins and when insurance benefits start being paid. Elimination periods typically range from 30 to 180 days for long-term disability policies. A longer elimination period means lower premiums but requires you to cover expenses longer on your own.
Long-Term Disability
Disability insurance that provides income replacement for extended periods — typically two years, five years, or until retirement age — after the elimination period ends. It usually replaces 50% to 70% of your pre-disability income and is available through employers or individual policies.