Long Term Care Insurance
Frequently Asked Questions

Answers to the most common questions about long-term care insurance — costs, qualifications, how benefits work, Medicare vs. Medicaid, hybrid policies, and more. If your question is not answered here, get a free quote and a specialist will answer it personally.

Q: What is long-term care insurance?
Long-term care insurance helps cover the cost of care when you can no longer perform everyday activities on your own due to aging, illness, or disability. It pays for care at home, in adult day care, assisted living, memory care, or a nursing home — protecting your savings from the high cost of extended care.

Q: What is the likelihood that I will need long-term care?
Approximately 70% of Americans who reach age 65 will need some form of long-term care. The average duration is about 3 years, but many people need care for 5 or more years. Women statistically need care longer than men. This risk is far greater than a house fire (about 3%) — which most people insure without hesitation.

Q: How much does long-term care cost?
Costs vary by type of care and location. Home care typically runs $4,000–$6,000/month; assisted living $4,500–$6,000/month; nursing home private room $8,000–$10,000+/month. Memory care typically costs more. See Who Pays? for more detail.

Q: Does Medicare cover long-term care?
Medicare provides very limited coverage — up to 100 days of skilled nursing facility care following a qualifying 3-day hospital stay. After 20 days a daily co-pay applies; after 100 days Medicare pays nothing. Medicare does not cover custodial care — the ongoing personal assistance most people actually need. See Who Pays?

Q: Will Medicaid pay for my long-term care?
Medicaid pays for long-term care, but only after you have spent down most of your assets. In most states a single person must have less than $2,000 in assets to qualify. This is why many people buy long-term care insurance or a Partnership LTC policy — to protect their assets and avoid having to impoverish themselves first.

Q: When should I buy long-term care insurance?
The best time is in your 50s — young and healthy enough to qualify easily at the best rates, yet old enough that the need feels real. Premiums are significantly lower when you are younger. You cannot purchase insurance after you already need care — once the horse is out of the barn, it is too late to close the door.

Q: What health conditions disqualify me from LTC insurance?
Conditions that typically disqualify applicants include Alzheimer's disease or dementia, Parkinson's disease, multiple sclerosis, ALS, and a current need for care assistance. However, many conditions do not automatically disqualify you. People who have had heart attacks, strokes, diabetes, or past cancer can often still qualify. See Can You Qualify? — and always apply before assuming you cannot.

Q: What triggers LTC insurance benefits?
Benefits are triggered when a licensed health care practitioner certifies that you need help with at least 2 of the 6 Activities of Daily Living (ADLs) — bathing, dressing, eating, transferring, toileting, and continence — for at least 90 consecutive days, OR that you need continual supervision due to severe cognitive impairment such as Alzheimer's disease. Look for policies requiring only 2 ADLs, not 3.

Q: Is long-term care insurance tax deductible?
Yes. Premiums for qualified LTC insurance are federally tax-deductible, subject to age-based IRS limits that increase with age. Most states offer deductions or credits as well. The LTC portion of hybrid life/LTC and annuity/LTC policies is also generally deductible. Benefits are typically received income-tax-free. Consult your tax advisor for your specific situation.

Q: What is the difference between traditional LTC insurance and a hybrid policy?
Traditional LTC insurance pays only when you need care — premiums may increase over time. A hybrid life/LTC or annuity/LTC policy combines a death benefit or annuity value with long-term care coverage. If you need care you draw from the policy; if you never need care your money is not lost — it passes to beneficiaries or remains as savings. Hybrid policies typically have fixed, level premiums. See Life Insurance/LTC and Annuity/LTC.

Q: Can a couple share LTC benefits?
Yes. Many policies offer a Shared Benefit rider allowing a couple to draw from a combined benefit pool. If one partner exhausts their benefit period, they can access the other's remaining coverage. It is cost-effective because it is unlikely both partners will need equal amounts of care.

Q: What is an elimination period?
An elimination period is the number of days you pay for care out of pocket before the policy begins paying — similar to a deductible expressed in time. Common periods are 30, 60, or 90 days. A longer elimination period means lower premiums. The 90-day elimination period is the most common and generally the most cost-effective choice.

Q: What is inflation protection and do I need it?
Inflation protection automatically increases your benefit amount each year to keep pace with rising care costs, which have historically risen 3–5% per year. If you are purchasing a policy more than 5–10 years before you expect to need care, inflation protection is strongly recommended. Common options are 3% or 5% compound annual increases.

Q: Will LTC insurance pay for care at home?
Yes. Modern LTC policies cover care in many settings including your own home — personal care aides, homemakers, and skilled nursing visits. In fact, most policyholders receive care at home or in assisted living rather than a nursing home. We also offer Home Care Only plans for those who want coverage specifically for in-home care.

Q: Are the quotes the same from any agent or broker?
Yes. LTC insurance premiums are regulated by each state's department of insurance. Every licensed agent and broker must charge the same premium for the same policy from the same insurer. There is no cost advantage to going directly to an insurance company — and an independent broker can compare multiple companies for you at no extra charge.

Q: Who should NOT buy long-term care insurance?
LTC insurance is generally not the right fit for people who currently receive or will soon qualify for Medicaid, have limited income and assets and cannot sustain premiums over the long term, or whose only income source is Social Security or Supplemental Security Income (SSI).

Q: What is a Partnership long-term care insurance policy?
A Partnership LTC policy is a state-certified policy that adds Medicaid asset protection. For every dollar the policy pays in benefits, an equal dollar of your personal assets is protected from Medicaid spend-down. If your policy pays $300,000 in benefits, you can apply for Medicaid and keep $300,000 in assets. Partnership policies also protect your estate from Medicaid recovery. See Partnership Protection.

Q: What should I look for when comparing LTC insurance policies?
Key features to compare: daily or monthly benefit amount, benefit period (years of coverage), elimination period, inflation protection, equal coverage for home care and assisted living alongside nursing home care, the number of ADLs required to trigger benefits (2 is better than 3), Alzheimer's coverage, and the financial strength rating of the insurer. Get a free quote and we will walk you through your options.

The quotes we provide you are the same from us or any other broker, agent or company.