There are many elderly people who due to some physical or cognitive disease, are unable to care for themselves. Long Term Care insurance would cover nursing homes, assisted living facilities, adult day care, in-home care and other functions that help us get through everyday life.

Long Term Care Insurance is also not just for the elderly. If a 30 year old purchased Long Term Care Insurance and soon after became paralyzed in an accident, or was diagnosed with a degenerative disease, Long Term Care Insurance could provide coverage for life.

While the wording may differ from policy to policy, there are three basic categories into which care may fall: home settings, assisted living and skilled nursing facility. The ideal policy will cover all three, since one never knows the type of care that will be needed. A person could have conditions where home care is possible but their policy only covers nursing home care. This person would have no coverage or be prematurely forced into a nursing home. Care cannot be substituted for another in a Long Term Care Policy.

If a person is in need of nursing home care, for example, and is without Long Term Care Insurance, the nursing home would be paid for out of the person’s assets. Government assistance would usually not begin until that person and their spouse’s assets were virtually depleted. It’s important to consider how long your assets and retirement funds will last if you don’t have Long Term Care Insurance.