Long-Term Care Insurance: Protect Your Independence and Savings
A simple guide for seniors and families to understand benefits, costs, and how to choose the right long-term care insurance (LTC insurance).
Who this is for
Aging seniors and spouses who want to stay independent
Adult children helping parents plan
Single adults who want to avoid burdening loved ones
Why consider long-term care insurance?
Maintain independence and dignity: LTC insurance can pay for care at home, in assisted living, memory care, adult day care, or a nursing home—so you have choices beyond Medicaid-only options.
Protect your spouse and savings: Paying for outside caregivers can drain joint assets. Insurance helps cover costs so your spouse can maintain financial security.
Reduce caregiver stress: Many spouses try to “do it all” and delay paid help. Insurance pays for respite and professional caregivers to protect the caregiver’s health.
Make family caregiving easier: If your children plan to help, insurance funds professional aides for bathing, dressing, toileting, transfers, and cleanups—tasks that are often tough for families to manage alone.
Support for single adults: A policy coordinates and pays for care so you are not dependent on friends or relatives.
Preserve your legacy: Insurance helps protect savings you may want to leave to your spouse, family, or charities.
More choice than Medicaid alone: Medicaid coverage rules vary by state and may limit home care or assisted living. Insurance gives you more control over where and how you receive care.
How long-term care insurance works (plain-language overview)
What it covers: Help with activities of daily living (ADLs) such as bathing, dressing, eating, toileting, transferring, continence—or severe cognitive impairment (e.g., Alzheimer’s).
Where care happens: Home care, assisted living, memory care, adult day services, or nursing home care (coverage details vary by policy).
Daily or monthly benefit: The maximum the policy pays for care each day or month.
Benefit pool: A total pool of money you can use as needed; often more flexible than a fixed “stated period.”
Elimination period: A waiting period before benefits start (often 0–90 days). Shorter periods start coverage sooner.
Inflation protection: Increases your benefits over time to keep up with rising costs (e.g., 3% or 5% compound).
Shared care for couples: Lets spouses share benefits if one partner uses more care.
Care coordination: Some policies include a care manager to help arrange services.
Waiver of premium: You typically stop paying premiums while you are receiving benefits.
Why it may cost more to wait
Premiums generally rise as you age and with new rates in the market over time.
Your health may change, making approval harder or more expensive.
A quick personalized quote will show how timing affects your options.
Simple buying checklist (what to look for)
Financial strength: Company rated A- (Excellent) or better by AM Best (A, A+, or A++ preferred).
Licensed LTC specialist: Work with a representative who focuses on long-term care.
Clear benefit triggers: Requires inability to perform at least 2 of 6 ADLs or severe cognitive impairment; includes “standby assistance” when applicable.
Pool of money design: More flexibility than a fixed benefit period for many buyers.
Understand the elimination period: Know how days are counted (calendar vs. service days).
Robust home care benefits: Adequate coverage for personal care, homemaker services, and agency/independent providers (per policy rules).
Assisted living coverage: Aim for the same benefit level as nursing home care.
Inflation protection: 3% or 5% compound options, with no harsh “caps” on increases.
Reasonable cost controls: Avoid policies with restrictive caps, tight provider rules, or narrow definitions that limit care.
Alternative plan of care: Flexibility for services that may not exist today.
Rate history and guarantees: Ask about past rate increases and what can change in the future.
Tax considerations: Understand tax-qualified status and potential deductions or HSA eligibility; consult a tax professional.
Call now(800) 989-8137 or click “Find Care Near Me” to get matched with options today.
What to do next
Get a personalized quote: Speak with a licensed specialist who will compare multiple top-rated carriers.
Bring a spouse or family member: Make decisions together; shared care options can help couples.
Prepare basic information: Your age, health history, preferred care setting, and budget range.
No-pressure conversation: Learn your options and get a written summary to review at your own pace.
Frequently Asked Questions
What does long-term care insurance cover?
Custodial and personal care when you need help with ADLs or have severe cognitive impairment. It can pay for home care, assisted living, adult day care, memory care, and nursing homes (policy-dependent).
Is Medicaid an alternative?
Medicaid can help if you meet strict income and asset requirements. Coverage varies by state and may limit home or assisted living care. Insurance gives more choice and control.
When should I buy?
Consider buying in your 50s to early 70s while you’re healthier and premiums are generally lower. Approval becomes harder with age and health changes.
How much coverage do I need?
Many buyers target a daily or monthly amount that meaningfully offsets local care costs, plus inflation protection. A specialist can tailor a recommendation to your budget and goals.
What if I never use it?
Some policies include return-of-premium or hybrid life/LTC options. A specialist can compare traditional and hybrid plans.
Will my premiums go up?
Rates are intended to remain level but can change with regulatory approval. Ask about the company’s rate increase history and factors that affect your policy.
