Long-term care insurance

What is a long-term care insurance? — Long-term care insurance refers to insurance coverage specifically designed to support individuals who require assistance with daily living activities due to old age, illness, or disability. It provides financial support to cover the costs associated with care services, either at home or in a specialised facility. This type of insurance is crucial for ensuring that people who become dependent can maintain a decent quality of life without placing a financial burden on their families.

Who is eligible for the long-term care insurance? — In Luxembourg, any person who becomes dependent on assistance as a result of physical or mental incapacity and who needs help with more than three basic activities of daily living (such as eating, bathing, or moving around) may qualify for long-term care insurance.

What are the benefits of the long-term care insurance? — This insurance covers a range of services, including personal care (help with washing, dressing, eating), nursing care, home adaptations, and support for caregivers. Benefits are provided in kind, meaning that the insured person receives services rather than direct cash payments.

How is the long-term care insurance financed in Luxembourg? — Long-term care insurance is usually financed by social security contributions (mandatory contributions from working individuals) and public funds. It may also involve individual contributions based on personal income and wealth.

What is the contribution rate for the long-term care insurance in Luxembourg? — The contribution rate for long-term care insurance is set at 1.4% of an employee's gross income. This rate is standardised for all employees to ensure equal participation in the financing of the care system. The contribution rate may vary in the future.

How is the long-term care insurance deducted? — The contribution for long-term care insurance is deducted directly from an employee’s gross salary as part of the payroll process. Employers are responsible for calculating this deduction and transferring it to the relevant social security authorities. 

What is the scope of the long-term care insurance application? — All residents of Luxembourg are subject to long-term care insurance contributions. Non-residents who work in Luxembourg and are covered by its social security system are also required to pay these contributions. 

What is the employers’ role in the long-term care insurance process? — Employers are responsible for withholding the long-term care insurance contributions from employees' salaries and ensuring that these amounts are paid to the CCSS. This is part of the broader payroll management responsibilities that also include income tax and other social security contributions. 

Synonyms : Dependency insurance, care insurance, nursing care insurance, elder care insurance, personal care insurance