Long-Term Care Insurance (LTCI) — a form of health insurance that provides benefits for a chronically ill or
disabled individual over an extended period of time. Long-term care (LTC)
coverage provides funds for nursing-home care, home-health care, personal, or
adult day care. Most LTCI policies will cover only a specific dollar amount for
each day spent in a nursing facility or for each home-care visit. Federal
legislation in 1996 established what is termed "tax-qualified long-term
care insurance" and standardized coverage to qualify for the
tax-deductible plan. Most LTC coverage is written to comply with the federal
plan. LTCI policies are either "tax-qualified" or
"non-tax-qualified," and there can be significant differences between
the two. Standard LTC is often referred to as non-qualified LTDI.