What Is Long Term Care and why it matters?

Long term care is a range of services designed to assist you in performing personal everyday tasks that you may no longer be able to complete on your own such as eating or bathing. Medicare doesn’t cover long-term care (also called custodial care) 

Your care can occur in your home, independent living facility, assisted living facility, or in a full care nursing home.

In general, long term care services can be quite expensive and not covered by health insurance plans. You can face the risk of depleting your personal savings and assets when in an extended long-term care situation.

If you are concerned about managing the cost of long-term care, there are several options that can help you pay for your care.


Medicaid is a government program that offers financial assistance for people with low income and limited resources to help cover health care costs. However, in order to receive Medicaid, you must meet certain requirements. For example, Medicaid applicants generally must have depleted most of their savings prior to receiving coverage. For those who qualify, Medicaid will typically cover 100% of long-term care costs.

Long term care insurance

Long term care policies can offer assistance to help offset the cost of long-term care. These policies can help protect your personal savings and your estate from being depleted by extended long term care costs.

There are two main options for long term care insurance: Traditional long-term care insurance and hybrid insurance.

Traditional long-term care insurance

With traditional long-term care insurance, you are able to customize your policy to fit your needs. You may choose the amount of coverage you want. You also choose when you want your benefits to start and for how long.

Traditional long-term care insurance is generally one of the most efficient ways to get the most coverage for your premiums paid.

Typically, you pay an annual premium for life, although your premium payment period could be shorter. Premiums are not guaranteed to stay the same and may rise after purchase.

You will not receive refunds of your premium or any cash value if you cancel your policy or end up not using the services.

Hybrid insurance

Hybrid insurance combines long term care insurance with either life insurance or annuities. In the event that you do not use long term care services, your beneficiaries may receive a death benefit or payment. Furthermore, hybrid insurance policies often offer a surrender value—which is a cash payment that is paid to you if you choose to cancel the policy. These policies are usually single payment premiums or flexible payment premiums for a certain number of years.

Let us know if you have additional questions or need our help