Long-term care insurance policy helps pay for the care you need when you can no longer care for yourself. It keeps you from having to rely on your children or family members for support. It may protect your family's financial future and your own investments and savings. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid.
In order to qualify for long-term care, you do not necessarily have to be sick, but instead, unable to perform the basic activities of daily living, such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.
Long-term care insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing homes and Alzheimer’s facilities. Depending on the coverage purchased, the insurance may pay for a visiting or live-in caregiver, companion housekeeper, therapist or private duty nurse up to seven days a week, 24-hours-a-day.
Premiums paid on a long-term care insurance policy may be eligible for an income tax deduction.