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• What is long term care insurance?
• Does long term care insurance only cover care in a nursing home?
• Why should I buy long term care insurance?
• When should I apply for long term care insurance?
• Comparing long term care insurance policies
• How much long term care insurance coverage do I need?
• What is a lapse and why are lapse rates important?
• Do long term care insurance rates ever increase?
• What to look for in long term care insurance coverage
• What does it mean to be "tax-qualified"?
• How can long term care insurance keep up with inflation?
• What is a plan of care?
• Do I continue paying premiums while I'm receiving benefits?
• What happens if I stop paying premiums?
• Will I always be able to keep my long term care insurance coverage?

Long Term Care Insurance Basics

Why Should I Buy Long Term Care Insurance?

Long term care insurance helps cover expenses for services for which most health plans and Medicare provide only limited (if any) coverage.

Health plans (including the FEHB Program, TRICARE,and TRICARE for Life) typically do not cover ongoing chronic care such as an extended stay in an assisted living facility or nursing home, or a continuing need for a home health aide to help you in and out of bed.

Medicare pays limited amounts for skilled care following a hospital stay; Medicare does not cover most long term care services which assist people with the activities of daily living over a long period of time.
 

Is Long Term Care Insurance Right for Me?

Long term care insurance is a smart choice for many people, but is not for everyone.

You should consider long term care insurance if you have assets of at least $30,000 (excluding your home) and/or you have income you want to protect.⁴ You may also want to consider long term care insurance if you want to choose where to receive long term care and/or you don’t want to burden your family with caring for you.

You should not consider long term care insurance if you can’t afford the premiums. If you will be paying premiums with money received only from your own income, a rule of thumb is that you may not be able to afford this (type of) policy if the premiums will be more than 7% of your income.⁴

If your sole income is from Social Security or Supplemental Security Income (SSI) or if you’re struggling to meet your basic monthly living expenses, this coverage may not make sense for you. If you are buying this (type of) policy to protect your assets and your assets are less than $30,000, you may wish to consider other options for financing your long term care.⁴

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