What is long term care insurance?
This type of insurance covers services and support for people needing long-term care, including help with the activities of daily living, as well as palliative and hospice care. Policies cover a wide range of benefits in a variety of settings, including the person’s home, an assisted living facility, or a nursing home. The exact coverage depends on the type of policy and the services it includes. You can purchase nursing home-only coverage or a comprehensive policy that includes both home care and facility care.
Many companies sell long-term care insurance. Costs and benefits vary, so it is a good idea to shop around and compare policies. The cost of a policy is based on the type and amount of services, how old you are when you buy the policy, and any optional benefits you choose. Some employers are starting to offer group long-term care insurance programs as a benefit. It may be easier to qualify for long-term care insurance through an employer-sponsored program, and group rates may be cheaper than the cost of an individual policy.
Buying long-term care insurance can be a good choice for younger, relatively healthy people at low risk of needing long-term care in the next 25 years. Costs go up for people who are older, have health problems, or want more benefits. Someone who is in poor health or already receiving end-of-life care services may not qualify for long-term care insurance.