In this video, I discuss long term insurance contract as covered on the tax compliance and planning CPA exam TCP.
Start your free trialhttps://lnkd.in/g4hZAp2

Long-term care insurance is a specialized type of insurance designed to provide coverage for the costs associated with long-term care services, which are not typically covered by standard health insurance policies. This kind of insurance is particularly important for those who become cognitively impaired or are unable to perform at least two activities of daily living (ADLs), such as eating, bathing, dressing, toileting, transferring (walking), and maintaining continence.

Unlike regular health insurance, long-term care insurance is specifically tailored to cover services that assist individuals in managing their daily activities. The insurance contract typically pays a predetermined daily amount to the insured, based on scheduled limits, for services needed to assist with the ADLs.

It's important to note that while Medicare, the U.S. government health insurance program for people over 65, does offer some long-term care benefits, these benefits are often seen as inadequate due to various limitations and strict eligibility requirements. Therefore, individuals who might need extended care often seek long-term care insurance to ensure they have adequate coverage for these services, which can be quite expensive and are not covered by traditional health insurance plans.

Long-term care insurance can be a crucial financial tool for managing the high costs associated with extended care, especially as one ages or in the event of chronic illness or disability. It provides peace of mind and financial security, ensuring that individuals can access the care they need without overly burdening their personal finances or relying on limited government benefits.







#cpaexaminindia #cpaexam #accountinglectures