For example, a person who is disoriented or is unable to get dressed and eat without help on a consistent basis might qualify for long-term care insurance benefits. Usually, policies cover all levels of care in state-licensed nursing homes. Many policies also cover assisted living and home health care. Home health care services typically covered by long-term care insurance include nursing care, therapy, personal care and homemaking.
Most policies contain a waiting period, during which no benefits are paid.
After you have satisfied the waiting period, your policy pays up to a maximum dollar amount for each day you receive approved care in a nursing home or at home. A policy may not cover all expenses. Many policies now offer an inflation adjustment feature that increases your per-day benefit to cover higher costs. Premiums for long-term care insurance can range widely, depending upon your age and the level of benefits you buy. Policies that cover a substantial portion of the daily cost of a nursing home or a policy with an inflation adjustment feature will tend to be more expensive.