How to Use Long Term Care Insurance to Fund Your Assisted Living Care Cost When You Get Older

California - No one likes to think about getting old and needing help with the activities of daily living. But the fact is, as we age, there is a greater chance we will need some form of long-term care. According to the U.S. Department of Health and Human Services, about 70% of people over age 65 will need some long-term care services during their lives.

One way to prepare for this possibility is to purchase long-term care insurance. Long-term care insurance is designed to help cover the cost of long-term care services, which can include assisted living, home health care, or nursing home care.

How Long-Term Care Insurance Works

Long-term care insurance policies typically have three main features:

1) A daily benefit amount that will be paid out to you to use for long-term care expenses. This benefit can be used for any long-term care service, including assisted living, home health care, or nursing home care.

2) A benefit period, which is the length of time that the policy will pay out benefits. The benefit period can be for a specific number of years (e.g., two years), or it can be until the policy limit is reached (e.g., $180 per day for as long as you need it).

3) A waiting period, which is the length of time that you must wait before benefits will begin being paid out. The waiting period can be anywhere from 0 days (meaning benefits would start immediately if you needed them) to 365 days (meaning you would have to pay for long-term care services yourself for up to a year before benefits would begin).

Long-term care insurance policies can be purchased through an insurance agent or broker or directly from an insurance company. Several websites offer comparisons of different long-term care insurance policies.

Purchasing long-term care insurance is one way to prepare for the possibility that you may need assistance with the activities of daily living as you get older. Long-term care insurance can help cover the cost of assisted living, home health care, or nursing home care. When shopping for a policy, compare features such as the daily benefit amount, the benefit period, and the waiting period.