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?
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.
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.
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