Long-term Care insurance provides for individuals who cannot care for themselves. These services are typically provided In-home or at In-patient centers. Notably, long-term care is not covered by traditional health insurance.

Costs
Obviously, having a dedicated helper to aid with eating, bathing and other functions can be very expensive. While having long-term care insurance is certainly imperative, it is also important to understand the different options available to you. Important variables effecting costs include the following:

1. Type of service
2. Amount of services
3. Your Age
4. Whether or not you are currently in poor health
5. Any optional benefits you choose

Long-term care insurance is offered by specific time periods and/or total dollar benefit limits. It is important to know that other choices exist and that there is flexibility when considering between different options.

You also need to understand how much the coverage you need will cost you in terms of monthly premiums.

Long-term care insurance is usually sold by the maximum amount of benefit payable per day or month. For example, you may purchase a plan that will pay a maximum of $200 per day.

It is also important to consider the lifetime maximum and time period the policy will cover. For example, you may purchase a policy that provides services for 10 years or you could buy a policy that covers a maximum of $500,000 worth of expenses.

Another important factor is the setting where the services will take place. For example, you may receive services in a medical facility or at home. Most policies are comprehensive which means that they pay for care at home or at nursing care facilities. Because home care is typically cheaper, most people will choose a home care policy that pays 50% to 75% of nursing home benefit amount. Facility care only policies do not cover home care and are cheaper than comprehensive policies. These are a good choice for those who have family or friends who they can rely on to care for them while they are at home.