Facts About Long-Term Healthcare Insurance

The costs of long-term healthcare can be prohibitive and can sometimes require the liquidation of assets or put a burden on family members and loved ones. Long-term healthcare insurance covers many of the expenses and can help protect assets and reduce the financial burden. 

• Long-term health care insurance typically covers assisted living facilities, custodial care, in-home care, nursing home, skilled nursing and Alzheimer’s disease care for adults over the age of 65.


• Depending on the type of coverage selected, a daily benefit between $100 and $500 is paid to cover health related expenses after a person qualifies for long term care.


• Long-term health care insurance can cost between $1,000 and $3,000 per year for a 65-year-old in good health, depending on where the person lives. Some policies have protections against inflation and guarantee that the policy won’t be cancelled as long as the premiums are paid. In addition, some policies return any unused benefit to the estate of a person who dies before using all of the benefits accrued.


• Long-term health care insurance is less expensive the earlier it is purchased.


• Those who require long-term health care and do not have insurance will be required to pay the costs out-of-pocket or rely on others to pay for them. The average cost for a year of long term care is between $40,000 and $100,000.


• Long-term health care insurance can often be purchased through traditional medical insurance companies. A list of reputable companies can be found through an employer’s human resources department or by contacting the American Association of Retired Persons.


• It is essential to research any insurance company offering long-term health care insurance as there are many fraudulent scams designed to take advantage of people.


• Approximately 60 percent of adults ages 65 and over will need long-term care in their lifetime.


• New tax benefits and government programs are being created to make long-term health care insurance more affordable for people who might have trouble paying the premiums.