Consumer Guide to Long-Term Care Insurance

Considering your future long-term health needs may not be pleasant, but it is essential. Long-term care is expensive, and Medicare and major medical plans cover few of the services related to this form of care.

Function

• The purpose of long-term care insurance is to provide coverage for services related to this form of care. This includes care received in nursing homes, assisted living facilities or in the home from home health agencies.

Features

• According to the US Department of Health and Human Services, long-term care insurance policies can provide coverage for a variety of services. You can choose comprehensive plans that cover both home health care and facility-based care, such as in a nursing home. If you have family to effectively take care of you in your home, it may be more economical for you to purchase a facility-only policy.

Significance

• According to the U.S. Department of Health and Human Services, almost three-quarters of people over age 65 will need long-term care at some point in their lives. Unfortunately, senior citizens' incomes often do not cover the high costs of this type of care. Purchasing a long-term insurance plan before you get sick can provide security. Whatever plan you choose, it's essential to purchase it before you need it; companies may refuse to insure you if you are already ill.