Long-term care refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to care for themselves for an extended period of time. Whether you need long-term care insurance depends on your age, health status, overall retirement goals, income and assets.
A long-term care insurance policy covers any or all of the following types of services:
Nursing home coverage
Assisted living facility coverage
Adult daycare center coverage
Home health care coverage
Personal care coverage
Most policies pay a maximum daily benefit and a maximum lifetime benefit. Actual benefits are chosen at the time the policy is purchased.
Purchasing a policy at a younger age typically means premiums are more affordable. While you may pay for a longer period of time, taking out a policy around age 50 allows you to enjoy the peace of mind in knowing that you are covered.