Does Long Term Care Insurance Cover A Nursing Home? 
Yes , long-term care insurance policies cover the costs of being in an authorized nursing home up to the policy limits -LRB- maximum daily , or maximum monthly dollars -RRB- indicated in the policy , plus any additional purchases of coverage , and any automatic benefit increases , if suchriders were purchased . Today 's long-term care insurance policiesalso cover other types of long-term care , includingcare costsat home , in an adult day-care center , and in authorized residential -LRB- also known as assisted living -RRB- facilities . Some policies also allow for the payment ofroutine domestic care such as house cleaning . A policy that covers all of these potential care costs is called a `` comprehensive '' long-term care policy . Very few facility-only or home care only policies are sold these days . Costs of care in a facility can be paid in one of two ways : 1 -RRB- the caregiver or policyownersets up automatic monthly payments directly to the facility from the insurance company with any additional charges above the maximum daily or monthly benefit of the policy being paid out-of-pocket , or 2 -RRB- the caregiveror policyowner receives aa check to pay for facility service charge after being billed by the facility and having paid that bill out-of-pocket . There are some policies that pay cash directly to the insured in the amount of the maximum monthly benefit regardless of costs incurred . This is called an `` indemnity policy '' and there are very few carriers that offer this type of coverage any longer . If the insured lives beyond the extent of the pool of money provided by the insurance company , the insured must pay for care out-of-pocket to remain in the facility . If the person has purchased a `` partnership '' plan of long-term care andexhausts the funds of thatpolicy , Medicaid -LRB- Medical in CA -RRB- willtake over payments of care as long as the amount paid out by the policy is greater than thethe non-excludableassets of the insured . 