Long-term care provides support for individuals who need assistance with basic daily activities due to aging, chronic illness, disability, or cognitive decline. These activities — often referred to as Activities of Daily Living (ADLs) — include eating, dressing, bathing, using the toilet, maintaining continence, and moving in and out of a bed or chair.
The High Cost of Care
The cost of long-term care can be significant. In-home professional care averages around $20 per hour, which amounts to approximately $44,000 per year for just eight hours of daily assistance. Nursing home care is even more expensive, often exceeding $90,000 per year. With these costs rising annually, long-term care insurance can play a crucial role in safeguarding your financial security. Much like life insurance protects your family, long-term care insurance helps shield your savings from the growing burden of care-related expenses.
🏥 Nursing Home Care
~$131,600/year
($10,965/month)
Private‑room long‑term care
*Based on national median cost in 2025 (Genworth).
💙 In‑Home Care
$33/hour
~$75,800/year* (44 hrs/week)
Help at home with daily tasks
*Based on national median cost in 2025 (Genworth / A Place for Mom).
How Long-Term Care Insurance Works?
How Long-Term Care Insurance Works?
Long-term care insurance is designed to provide financial support when you’re no longer able to manage daily living activities on your own due to a chronic illness, disability, or cognitive impairment. This type of insurance typically activates when a licensed medical professional certifies that you either suffer from a severe cognitive disorder such as Alzheimer’s disease or dementia, or you need help with at least two or more Activities of Daily Living (ADLs) — which may include bathing, dressing, eating, using the toilet, transferring (e.g., getting in and out of bed), or maintaining continence.
Once your claim is approved, the policy helps pay for care services provided either in your home, at an assisted living facility, adult day care center, or a nursing home — depending on the coverage and your personal preferences. This coverage is especially valuable because the costs of long-term care can be staggering. According to national estimates, nursing home care can exceed $90,000 per year, and even in-home care can quickly add up, especially if you require skilled or around-the-clock assistance.
While many families want to provide care for aging or ill loved ones, the demands of long-term caregiving can become emotionally draining and financially unsustainable. Without proper planning, your spouse, children, or other relatives may be forced to make difficult sacrifices — like reducing work hours, dipping into their savings, or hiring costly professional help.
Long-term care insurance offers a practical, affordable solution. For just a few dollars a day, it helps safeguard your retirement savings, maintain your independence longer, and reduce the emotional and financial stress on your family. It’s not just an insurance policy — it’s a proactive step toward dignity, control, and peace of mind for both you and those who care about you.
Long-term care insurance is designed to provide financial support when you’re no longer able to manage daily living activities on your own due to a chronic illness, disability, or cognitive impairment. This type of insurance typically activates when a licensed medical professional certifies that you either suffer from a severe cognitive disorder such as Alzheimer’s disease or dementia, or you need help with at least two or more Activities of Daily Living (ADLs) — which may include bathing, dressing, eating, using the toilet, transferring (e.g., getting in and out of bed), or maintaining continence.
Once your claim is approved, the policy helps pay for care services provided either in your home, at an assisted living facility, adult day care center, or a nursing home — depending on the coverage and your personal preferences. This coverage is especially valuable because the costs of long-term care can be staggering. According to national estimates, nursing home care can exceed $90,000 per year, and even in-home care can quickly add up, especially if you require skilled or around-the-clock assistance.
While many families want to provide care for aging or ill loved ones, the demands of long-term caregiving can become emotionally draining and financially unsustainable. Without proper planning, your spouse, children, or other relatives may be forced to make difficult sacrifices — like reducing work hours, dipping into their savings, or hiring costly professional help.
Long-term care insurance offers a practical, affordable solution. For just a few dollars a day, it helps safeguard your retirement savings, maintain your independence longer, and reduce the emotional and financial stress on your family. It’s not just an insurance policy — it’s a proactive step toward dignity, control, and peace of mind for both you and those who care about you.
Types of Long Term Care Insurance
| Type of LTC Insurance | Key Features | Pros | Considerations |
|---|---|---|---|
| Traditional LTC Insurance | Dedicated long-term care coverage | Customizable benefits, strong coverage options | Premiums can increase over time |
| Hybrid LTC + Life Insurance (or LTC + Annuity) | Long-term care + life insurance value | Guaranteed premiums, “no use it or lose it,” benefit paid as LTC or death benefit | Higher upfront cost than traditional LTC |
| Short-Term Care Insurance | Covers shorter care needs (up to 1 year) | More affordable, easier to qualify for | Limited protection compared to other options |
What Long Term Care Insurance Covers
Long term care insurance helps pay for the many types of extended care services that individuals may need as they age or face chronic health conditions. One of the primary areas of coverage is nursing home care, which includes round-the-clock supervision, medical support, and help with daily activities. Policies also typically cover assisted living facilities, where individuals can maintain more independence while still receiving personal care and support. In addition, long term care insurance often pays for in-home care, allowing policyholders to receive assistance from personal caregivers in the comfort of their own home. This can include help with bathing, dressing, medication reminders, and household tasks. Many plans also extend coverage to adult day care programs, offering structured support, social engagement, and supervision during daytime hours.
Beyond basic personal care, long term care insurance can also help cover more specialized services. This includes memory care or Alzheimer’s facilities, which provide secure environments and tailored support for individuals with cognitive impairments. Many policies also cover hospice care, offering compassionate end-of-life support focused on comfort and quality of life. For families who provide care themselves, some plans even include respite care, giving caregivers short-term relief by covering temporary professional assistance. Overall, long term care insurance provides broad protection across a wide range of services, making it a vital tool for individuals who want financial security and flexibility as their care needs evolve over time.
Who Should Consider Long Term Care Insurance?
Long term care insurance is designed for people who want to protect their savings, preserve their independence, and avoid placing the burden of long-term caregiving on their families. While anyone can benefit from this type of coverage, certain groups are especially well-suited for it. Understanding who needs LTC insurance can help you decide whether it’s a smart addition to your long-term financial plan.
People who should consider long term care insurance include:
- Adults ages 45–65 who are planning for retirement and want to lock in lower premiums before health declines
- Individuals with a family history of chronic illness, such as Alzheimer’s, stroke, or mobility issues
- Homeowners or people with significant assets who want to protect what they’ve built from long-term care costs
- Married couples who want to safeguard a spouse financially if one partner requires extended care
- Anyone who wants to avoid burdening their children or family members with caregiving responsibilities or financial strain
If you’re wondering whether long term care insurance is worth it, the answer often comes down to your goals for retirement, your family situation, and your desire to protect your finances. By planning ahead, you gain more control over your care options and provide meaningful peace of mind for yourself and the people you care about.
Common Questions
How Much Does Long-Term Care Insurance Cost?
Costs vary based on your age, health, and the coverage you choose. The younger and healthier you are when you apply, the lower your premiums are likely to be. Waiting not only increases the cost but may also limit your options if health issues develop, potentially making it harder to qualify for coverage at all.
I Don’t Want a Nursing Home — Does Insurance Still Help?
Yes. Long-term care insurance isn’t limited to nursing home coverage. Most modern policies offer flexibility and cover a range of care options, including in-home assistance, adult day care, and services in assisted living facilities. This means you can receive the care you need in the comfort of your own home while maintaining your independence. It’s a way to customize your care according to your preferences—not just your medical needs.
What If I Never Use It?
One common concern is paying for coverage you may never need. Fortunately, some long-term care insurance policies offer a return-of-premium feature. This means that if you never use the benefits, a portion — or in some cases, all — of the premiums you paid can be returned to your heirs. It’s a way to ensure your money isn’t wasted and can still support your family, even if you never require care. This option adds peace of mind by turning your policy into both protection and a potential legacy.
What About LTC Riders on Life Insurance?
Long-term care (LTC) riders added to life insurance policies can be a smart alternative to standalone LTC insurance. These riders allow you to access a portion of your life insurance benefit to cover long-term care expenses if needed. They’re often easier to qualify for, especially if you have health concerns, and many offer level premiums that remain consistent over time. While they may not provide as much coverage as a dedicated LTC policy, they offer added flexibility and value — making them a great option to consider as part of your overall financial plan.
Bottom Line
Long-term care insurance isn’t just an option — it’s a vital part of a smart financial plan. It’s never too early or too late to protect yourself. Call us at (800) 442-9899 or click below for a free quote and answers to your questions.
Long-Term Care Insurance: FAQs
What is long-term care insurance?
Long-term care insurance helps pay for extended care services that regular health insurance, Medicare, and Medicaid often don’t fully cover. This includes assistance with daily living activities like bathing, dressing, eating, and mobility. It helps protect your savings and reduces the financial burden of long-term care.
Why is long-term care insurance important?
Long-term care is expensive—costs can exceed $50,000 to $100,000 per year depending on the level of care. LTC insurance helps protect your retirement assets, provides choice in care options, and prevents financial strain on your spouse or family members.
What does long-term care insurance cover?
Coverage may include:
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Nursing home care
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Assisted living facilities
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Home health care
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Adult day care
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Memory care / Alzheimer’s facilities
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Respite care
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Skilled nursing and rehabilitative services
Policies vary, but LTC insurance focuses on support for chronic illness, disability, or aging-related needs.
When should I buy long-term care insurance?
Experts recommend purchasing LTC coverage in your 50s or early 60s, when premiums are lower and approval is easier. Waiting too long increases costs and raises the risk of being declined due to health changes.
Does long-term care insurance cover Alzheimer’s and dementia?
Yes. Most LTC policies cover cognitive impairments, including Alzheimer’s, Parkinson’s, and dementia. This is one of the most valuable aspects of LTC insurance, as memory care facilities are often very expensive.
What is the elimination period?
The elimination period is the waiting period before your benefits begin—typically 30, 60, or 90 days after care starts. Shorter elimination periods mean higher premiums.
Can I receive long-term care benefits at home?
Yes. Many policies offer home health care benefits, allowing you to receive assistance in your own home. This includes services like part-time caregiving, nursing visits, and help with daily living tasks.
Will my premiums increase over time?
Possibly. While some policies offer level premiums, many LTC insurers reserve the right to raise rates for entire classes of policyholders. Rate increases must be approved by regulators, and they’re typically spread over many years.
Can I get long-term care insurance if I have health issues?
It depends. Some conditions—like severe cognitive impairments, major mobility issues, or recent strokes—may result in declines. However, options like hybrid LTC-life insurance or short-term care insurance may still be available.
Is long-term care insurance worth it?
LTC insurance is often worth it if you want to:
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Protect your savings from high care costs
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Reduce burden on family members
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Maintain control over where you receive care
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Prepare for chronic illness or aging needs
It offers financial security and peace of mind for you and your loved ones.
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