What is Long Term Care Insurance? Definition of Long Term Care Insurance Long Term Care Insurance is an insurance arrangement designed to meet the needs of individuals requiring assistance with the activities of daily living (ADL's).  In the event the insured is unable to care for themselves due to chronic illness or cognitive impairment, Long Term Care Insurance pays a benefit to cover the cost of the medical services and support required to maintain day to day activities. It provides a tax-free daily benefit to cover the cost of care at home or in an extended care facility of choice.  The benefit amount is sold in increments of $10 per day.  The maximum daily benefit amount varies based on the product.  Activities of Daily Living* Long Term Care Plans will pay benefits when the insured can no longer perform 2 or more "Activities of Daily Living" (ADL's) or is cognitively impaired.  These ADL's include: Toileting - the ability to do all of the following, with or without the aid of equipment. a) get to and from the toilet b) get on and off the toilet c) maintain a reasonable level of personal hygiene for the body   Dressing - the ability to:. a) put on or take off garments and/or braces or artificial limbs; and b) secure and unfasten the garments or devices   Eating - the ability to consume food that has already been prepared and make available, with or without the use of adaptive utensils.  "Eating" does not mean an ability or inability to prepare the food.. Bathing - the ability to wash oneself completely in a tub, shower, or by sponge bath, with or without the aid of equipment. Transferring (getting in and out of a chair (including a wheel chair) or bed.  If ap person can move with the help of equipment such as a cane, walker, crutches, grab bars or other support devices, then he or she will be considered able to transfer positions.   Cognitive Impairment* Cognitive impairment means a loss of mental capacity demonstrated by a person's inability to think, perceive, reason or remember.  Such impairment results in a person's inability to care for him or herself without ongoing supervision form another person and is not due to a mental condition without an organic cause.  Determination of cognitive impairment will be made on the basis of clinical data and valid standardized measure of such impairments. * Definitions from Manulife's Living Care Policy. -