According to data from the Administration for Community Living, which is part of the US Department of Health and Human Services, about 70% of 65-year-olds will require long-term care services or support by 2020.

 

When you have a chronic medical condition, a disability, or an illness like Alzheimer’s disease, long-term care insurance coverage can assist in paying the costs of that care. Most policies will reimburse you for services rendered in a variety of settings, including:

• Your home

• Nursing Homes

• Assisted Living Facilities

• Adult Day Care Centers

Long-term care is not covered by standard health insurance. When you need skilled nursing or rehab, Medicare won’t help as it only covers brief nursing home stays or limited amounts of home health care. Custodial care, which involves supervision and assistance with day-to-day duties, is not covered.

In most places, if you don’t have long-term care insurance, you’ll have to pay for it out of pocket. Medicaid, a federal and state-run health-insurance program for low-income people, can help, but only after you’ve used up all of your funds.