How to Choose Long-Term-Care Insurance

The cost of nursing homes and home health programs for people who need long-term care is prohibitive. You can protect your assets by taking out long-term-care insurance, which covers many of the expenses.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Life Insurance

1. Know that long-term-care policies usually are recommended for people who have substantial assets. Medicaid covers the expenses of those who have few assets.
2. Decide how much coverage you want. Long-term-care policies typically pay $50 to $200 a day toward the cost of nursing homes, in-home care, physical therapy, nurse's aides and other health-related outlays.
3. Look for a guarantee that the policy won't be canceled or nonrenewed as you age or become ill.
4. Shop for a policy that will cover you for at least a year.
5. Ensure that the policy covers unskilled as well as skilled care.
6. Make sure the policy doesn't require that you be hospitalized before you can receive benefits for in-home or nursing home care.
7. Know that premiums will rise sharply as you get older. An 80-year-old may pay three or four times what a 65-year-old pays for coverage.

Tips & Warnings

• Consider getting coverage for Alzheimer's disease. Some plans also offer an inflation protection option.
• Long-term-care plans won't cover all your expenses. They are indemnity plans, which means they pay a fixed amount of money per day toward your expenses.