The nursing care insurance provides the policyholder protection to cover the needs that may arise in case of any physical or psychological disability that makes the basic activities of daily life impossible.
The policyholder should have his/her dependency situation legally recognised.
In that case, the insurance will provide the policyholder with a provision of services and/or a monetary compensation enough to cover the required needs, like hiring a personal caregiver, receiving health care or buying the necessary medical devices or equipment.
This insurance can be underwritten only to a maximum age limit, between the ages of 70 and 75.
It must be underwritten before the incident (in this case, the declaration of dependency) has occurred.
To that end, the insurer often requires to fill in a form showing the policyholder´s situation.
The primary coverage consists on a monetary compensation, paid in capital or as an annuity.
Some insurers include the Family Assistance coverage providing teleassistance, guidance by telephone and even home help service benefits.
This kind of insurance usually set waiting periods that may vary depending on the case resulting in dependency. Many insurers determine a waiting period of approximately one year for any circumstance not being extraordinary, as could be dependency for reason of old age, non mental illness, etc. Another circumstance implying waiting period is mental or neuropsychiatric illness. The waiting period in that case would be of approximately three years since the insurance is underwritten.