Long-Term Care Insurance

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Long-term care insurance helps pay for services that support you when you can no longer perform everyday activities on your own, such as bathing, dressing, or eating. Coverage can include care provided in a nursing home, assisted living facility, adult day care center, or even your own home. It’s designed to fill the gap left by health insurance and Medicare, which generally do not cover long-term custodial care. 

Benefits typically begin when a licensed healthcare professional certifies that you are unable to perform at least two out of six Activities of Daily Living (ADLs) — such as bathing, dressing, eating, toileting, transferring, or continence — or when you have a severe cognitive impairment, like Alzheimer’s disease. Most policies also include an elimination period (similar to a deductible), which is a waiting period before benefits start.

With traditional long-term care insurance, you won’t receive any payout if you never need care — much like auto or homeowners insurance. However, hybrid (linked-benefit) policies address this concern by combining long-term care coverage with life insurance or an annuity, ensuring that either you or your beneficiaries still receive a benefit.