How to Select a Long Term Care Policy

Long-term care basically refers to the assistance required by people with disabilities or certain extended medical conditions. This type will not be covered by the usual health care policy – Medicare or Medicaid – therefore the decision of whether to purchase long-term care requires plenty of consideration due to the high cost associated with it.


  • 1

    Age factor/ waiting Period

    As Long-term care policies are relatively expensive than other types it is important that you purchase it when you’re younger. Keep in mind the waiting period before the insurance bears the cost. You will need to pay for the all the expenses with your own money during the waiting period.

  • 2


    Premiums will have a direct relationship with your income. It is important to ask yourself how much you will be able to pay in premium. The budget for most families is limited, and given the high rising cost attached, it is important to take into account the current and future income flows. Also any savings or investments made will provide you the necessary cushion as you intend to invest in long-term care policy. Contacting a financial advisor in such situations will help you assess the relative advantages of pursuing the policy without suffering financial ruin.

  • 3


    Make sure that the long-term care policy covers all medical related services. Home care is usually preferred by most where they receive benefits at home rather than going to a nursing home or a special health care service. However, in most cases, you will need outdoor help for a specific disability so make sure that your policy caters for that.

  • 4

    Benefit time frame

    It is important to note the time frame of the policy. One generally cannot afford a lifetime long-term care policy due to the exuberant amounts he or she will have to pay. A more sensible option will be five- year benefit service. However, make sure to account for inflation as you calculate the figures.

  • 5

    Support system

    You may take help from members of the family who can provide additional funds as you select on the type of policy which ideally suits your needs. Decide whether paying them back the money is viable rather than putting your own assets at risk.

  • 6


    It is important to determine when the policy kicks in. You may require daily benefits such as bathing, dressing etc or for serious illnesses related to disability or cognitive impairment.

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