ABA Family Legal Guide

The Rights of Older Americans

Health and Long-Term Care Benefits

Paying for Long-Term Care

What is long-term care insurance?

Long-term care insurance helps pay for nursing-home care and usually home care services for a period of two or more years. Long-term care insurance is still a relatively new type of private insurance, so the features change frequently.

Most individual policies are available for purchase only to people between the ages of 50 and 84, and a medical screening is typically required. Not every older person needs or can afford a long-term care insurance policy. Policies are appropriate for those with substantial income and assets to protect and who wish to buy this form of protection against the potential costs of long-term care.

Most long-term care policies are structured as indemnity policies. That is, they pay up to a preset cap for each day of a covered service. Other policies pay a percentage of costs up to a cap. The specific provisions should be closely examined before purchasing, since the possible conditions and limitations on coverage can be complex.