What is it?

Long-term care insurance helps you pay for your extended medical needs in a nursing home facility or in the comfort of your own home.

Who needs it?

Long-term care insurance should be an important part of every family’s planning. While we’d like to think that we will never need long-term care, or that we could easily afford it the statistics suggest otherwise:

70 percent of people over age 65 will need some type of long-term care services during their lifetime.
3 years is the average duration of long-term care needed per individual.
$91,250 is the average annual cost of private nursing home care.
$80,300 is the average annual cost of at-home nursing care.

Traditional medical insurance programs and government medical insurance programs don’t usually provide enough help. According to the Department of Health and Human Services, Medicare only pays for long-term care services for a maximum of 100 days, with a copay after the 20th day, and only if you meet certain criteria. Medicaid does pay for long-term care, but only if your income is below a certain level, and you meet state requirements.