Long Term Care

Many people don’t consider the possibility that they may need help taking care of themselves in the future. Well, long-term care insurance is designed to ensure that people have the means to secure the help they need if they become unable to complete routine daily activities on their own. If you want this additional layer of security, consider purchasing a long-term care insurance policy in addition to your major health insurance.

What Is Long-Term Care Insurance?

A long-term care insurance policy helps cover the costs of care when you are diagnosed with a chronic medical condition, disability, or disorder that reduces your ability to complete routine daily tasks. A majority of policies reimburse the insured for care given in places like your home, a nursing home, an assisted living facility, or an adult day care center.

Who Should Purchase Long-Term Care Insurance?

Considering your long-term care needs is important, especially for people entering retirement. Nearly 70% of 65-year old people will need long-term care services at some point and regular health insurance doesn’t cover long-term care. Medicare won’t cover most services either. They only cover short nursing home stays and limited amounts of home health care. Medicare doesn’t pay for custodial care, which involves direct supervision and help with daily tasks.

How Does Long-Term Care Insurance Work?

The first step toward purchasing a long-term care insurance policy is filling out an application and answering health questions. Your chosen insurer may ask to see some medical records and usually there is an interview involved. During the application process, you choose the amount of coverage you want. 


Once you’re approved for coverage and the policy is issued, you start paying premiums. To be eligible for benefits, you must be unable to do at least two out of six “activities of daily living” on your own. You may also be eligible if you suffer from dementia or another cognitive impairment.

What Are The Activities of Daily Living?

The activities of daily living include:

  • Bathing
  • Caring for incontinence
  • Dressing
  • Eating
  • Toileting (getting on or off the toilet)
  • Transferring (getting in or out of a bed or a chair)

How Much Does Long-Term Care Insurance Cost?

Long-term care insurance costs vary. According to Nerdwallet.com, a 55-year old man in good health can expect to pay approximately $1,700 a year for long-term care insurance with an initial pool of benefits amounting to $164,000. Prices are determined based on the following:

  • Age and health
  • Gender
  • Marital status
  • Insurance company
  • Amount of coverage


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Shop For Long-Term Care Insurance

Long-term care costs can amount to hundreds or even thousands of dollars every day. To avoid this expense, consider purchasing long-term care insurance today. The experts at American Family Solutions can help you get started. Call us to get a free quote.