What is long-term care insurance? Long-term care insurance is a type of insurance that covers care generally not covered by health insurance, Medicare, or Medicaid. It is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization or other facility. Long-term care insurance policies typically reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. Your policy may allow you to select a range of care options designed to allow you to get the services you need, where you need them. If you are in poor health or already receiving long-term care services, you may not qualify for a new long-term care insurance policy since most individual policies require medical underwriting. Some group policies do not require underwriting. You should check with your insurance broker or financial planner.

So how do you know if long-term care insurance is for you? There are a few factors to look at. The first recommendation is that long-term care insurance makes the most sense for people who can afford the monthly premiums and have assets they want to protect. The second recommendation is to look at your health, your family health history, land your risk of disability and/or dementia. . These are the highest-risk diagnosis for needing long term care. The third recommendation is to consider your sex—women statistically live longer than men and women statistically utilize long term care services more than their male counterparts.

So are you considering long-term care insurance? Be sure to chop around for the best product, for your unique situation. We also strongly recommend a policy that includes case management—helping to assure you get the best care possible for the dollar. Most important—don’t feel pressured into making a decision right away and make sure you can reasonably afford the premium well into retirement.