A Guide to Long-Term Care Insurance
As we get older, it’s natural to start thinking about the kind of care we might need down the road. Long-term care insurance is a type of coverage that helps pay for everyday care if you ever need help with basic tasks because of age, illness, or injury. It’s different from regular health insurance or Medicare, which usually don’t cover this kind of personal care for very long.
Having long-term care insurance can offer peace of mind. It helps you plan ahead and gives you more choices about how and where you receive care—whether it’s in your home, an assisted living community, or a nursing home. It also helps protect your savings and may ease the financial stress on your family.
What is long-term care?
Long-term care refers to services that help you live as independently as possible when everyday tasks become difficult. This may include:
Help with getting in and out of bed, dressing, or eating
Using the toilet and bathing
Taking medication
Doing light housework, like vacuuming or washing dishes
Shopping for groceries and preparing meals
Taking care of pets
Managing money
These services are not typically covered by regular health insurance or Medicare. That’s where long-term care insurance fills the gap.*
Long-term care insurance policies will typically pay you back for care you received in:
Your home
A nursing home
An adult day care center
An assisted living facility or skilled nursing facility
According to the U.S. Department of Health and Human Services, about 70% of people turning 65 today will need some form of long-term care during their lives.
How Long-Term Care Insurance Works
If you buy a long-term care insurance policy, you pay a monthly or yearly premium—just like you would for auto or homeowners insurance. Then, if you ever need care, the insurance helps cover the costs.
Policies vary, but most work like this:
Choose Your Coverage Amount: For example, a daily benefit of $150 per day for up to 3 years.
Wait Through an “Elimination Period”: This is a short period (often 30–90 days) after you begin needing care before the policy starts paying out.
Submit Documentation: A doctor must verify that you need help with two or more daily activities, or that you have a cognitive condition like Alzheimer’s.
Long-term care insurance gives you more choices in how and where you receive care. Without it, people often rely solely on family or must pay out of pocket.
Why It Matters
Paying for long-term care can be expensive. In 2024, the national median cost for a private room in a nursing home was $127,750 per year. Even home health aide services cost about $34 per hour, which can add up quickly.
Long-term care insurance can help protect your savings. It also gives you and your loved ones peace of mind, knowing there’s a plan in place if you need care.
Some people buy policies in their 50s or early 60s, before health problems arise. Others wait until later—but keep in mind that premiums go up as you age, and some people may not qualify due to health conditions.
Is long-term care insurance right for you?
Long-term care insurance isn’t one-size-fits-all. It depends on your health, your financial situation, and your personal preferences.
Questions to consider:
Do you have enough savings to pay for care out of pocket?
Would you prefer to stay at home rather than move into a facility?
Do you have loved ones who can help care for you—or would you prefer outside help?
A licensed insurance agent can walk you through your options and help you decide what works best for your needs.
Planning Today for a Peaceful Tomorrow
Thinking about long-term care isn’t always easy—but planning ahead can make a big difference. Long-term care insurance can help you stay in control of where and how you receive care, whether that’s in your own home or at a specialized facility. It also helps ease the financial burden on your loved ones, giving everyone a little more peace of mind.
If you’re considering a policy, start by talking with your doctor and a licensed insurance agent. They can help you figure out your needs and review your options. It’s also a good idea to include your family in the conversation, so everyone understands your wishes.
You’ve worked hard to build a life you love—long-term care insurance is one way to help protect it.
Sources:
U.S. Department of Health & Human Services: LongTermCare.gov
Nerdwallet: Long-Term Care Insurance Explained
Genworth: CareScout Cost of Care
SelectQuote: Original Medicare Long-Term Care Coverage and Hospice Needs
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