Custodial and intermediate care are not covered by Medicare. The availability of Medicare- approved nursing homes varies among communities. In Arkansas, LTC insurance policies must provide coverage for skilled, intermediate, and custodial care in a nursing home. Some residential custodial homes will not meet the criteria for coverage under an LTC policy. Limitations spelled out in the policy can reduce or eliminate policy benefits you might hope to receive.
Premiums are fairly high.
Insurance is risk protection. U.S. Department of Health and Human Services estimates persons age 65 and over have a 40 percent lifetime risk of ever entering a nursing home. That means two out of five senior adults are likely to enter a nursing home at some time. This fact sheet can help you evaluate the financial resources you presently have to pay for nursing home care. In some areas, rates are much higher.