Long-term care refers to a variety of services that are not covered by health insurance or Medicare. It can help cover the costs of care associated with chronic medical conditions, disabilities, cognitive impairment, like dementia, or disorders, like Alzheimer’s. This insurance covers assistance with daily activities like dressing and bathing while you’re at home, in a nursing home, in an assisted living facility or in an adult day care center. To purchase a policy, you’ll need to complete an application and answer health-related questions. The insurance company may request your medical records and conduct an interview. Most policies include an elimination period, typically ranging from 30 to 90 days, before the insurer will start reimbursing you for care. Long-term care insurance determines eligibility for benefits based on your inability to complete activities of daily living, or ADLs. ADLs are usually defined as: bathing, dressing, eating, toileting and transferring (getting in and out of bed). Once you’re eligible for benefits, policies will usually pay up to a daily limit for care until you reach the lifetime maximum. Premiums for this type of coverage can vary depending on your age, health, gender and marital status. The insurance carrier and amount of coverage you select will also factor into the cost of your policy. It is important to note that you won’t qualify for long-term care if you already have an incapacitating condition or if you are of an advanced age, usually over 75 years.

Investing in long-term care insurance can help you prepare for needing assistance later in your life.