Long-Term care insurance helps cover the cost of a nursing home or (with some policies) services provided at home. Long-term care typically begins when you need help with one or more activities of daily living, usually as a result of an illness or disability (for example, a stroke or Alzheimer’s disease). Activities of daily living (ADLs) include dressing, eating, bathing, walking, transferring from a bed to a chair, and toileting, and maintaining continence.  Along with assistance in ADL, you may require acute medical care, otherwise known as skilled nursing care, or intermediate nursing care, which requires some skilled nursing care combined with personal care.

But it’s the long-term personal care, more commonly referred to as custodial care, which can be quite costly.  While studies have shown a majority of people will either never enter a nursing a home or will spend less than 3 months in one, many elderly people will need some daily assistance at home to care for themselves. This care may be provided by a home health aide or may require a skilled nurse, or physical, occupational or speech therapist.  

And for those who do enter a nursing home, the average length of stay is 2 1/2 years or less.  Contrary to popular belief, nursing home costs are not eligible for Medicare coverage unless certain qualifications are met.  It’s Medicaid that pays almost 50% of the total cost of nursing home care in this country, but will you be eligible?