Long Term Care Insurance

Long-term care (LTC) insurance covers services not covered by health insurance, Medicare, or Medicaid — including nursing home care, assisted living, and in-home care for those who can no longer perform basic daily activities on their own.

Why Long-Term Care Planning Matters

• 70% of Americans over 65 will need some form of long-term care during their lifetime
• The average nursing home cost in California exceeds $110,000 per year
• Medicare only covers limited skilled nursing care following hospitalization — not custodial care
• Medicaid covers LTC only after you've spent down most of your assets

What Long-Term Care Insurance Covers

• Home health aide services
• Adult day care programs
• Assisted living facilities
• Memory care facilities
• Nursing home care
• Hospice care (varies)

When to Buy LTC Insurance

The earlier you buy, the lower your premium. Most people purchase LTC coverage in their 50s or early 60s — before health conditions develop that may make them uninsurable.

Hybrid Policies

Newer "hybrid" life + LTC policies combine death benefit with long-term care benefits. If you need LTC, the policy pays for care. If you don't, your beneficiaries receive a death benefit. These are increasingly popular because you "use it or lose it" is no longer a concern.