Planning for the future includes confronting the reality of long-term care, as the likelihood of needing it rises with age. Buying long-term care insurance is one option to consider, but understanding what it entails and its interplay with your unique circumstances is crucial.

Your Coverage Needs

Firstly, it’s essential to understand what you’ll need in terms of long-term care. This could include in-home care, assisted living, or skilled nursing. While it’s challenging to predict exactly what type of care you’ll need years in advance, examining your family’s health history and lifestyle can give some indicators. Conditions like Alzheimer’s, for example, often require extended, specialized care. Keep in mind that women tend to outlive men and may have a greater likelihood of needing long-term care at some point. Similarly, if you’re single or don’t have a family support system nearby, you might be more reliant on professional long-term care services.

Coverage You Already Have

Before purchasing long-term care insurance, it’s vital to understand the coverage you already have. Medicare will take care of many of your long-term care needs. However, it’s important to note that Medicare only covers specific types of care under certain conditions, and for a limited period. Health insurance and Medicare may cover skilled care for a limited time following hospitalization but generally don’t cover the cost of chronic care or assistance with daily activities. Supplemental policies like Medigap can offer more coverage, but typically still exclude long-term, custodial care. If you are a veteran, you may be eligible for long-term care benefits through the Department of Veterans Affairs. Check your existing policies and understand their terms, so you know what is already covered and where gaps may exist.


The cost of long-term care insurance can be substantial, and premiums can increase over time. When considering insurance, it’s crucial to factor in these costs, along with the policy’s details such as the elimination period, daily benefit amount, and inflation protection. Compare these costs with the expense of self-insuring. Some may find that saving and investing the amount they would spend on premiums could cover their long-term care needs, especially if they’re still relatively young and in good health. But it’s also important to understand the cost of long-term care. According to the U.S. Department of Health and Human Services, the average cost of a semi-private room in a nursing home was $7,698 per month in 2020. In-home care and assisted living facilities can also run into thousands of dollars per month.

Thinking about long-term care insurance requires careful evaluation of your current health, your family’s health history, your financial situation, and your existing coverage. By considering these factors, you can make an informed decision about whether long-term care insurance is the right choice for securing your future.

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