What to know about long-term care insurance

Insurance is a safety net that can help people confront accidents, injuries and other unforeseen events. People may be quick to associate insurance with injuries or property damage, but one insurance product is designed for something that has little to do with broken bones or homes wrecked by strong storms. Long-term care insurance is an asset that can help people afford the fact that many are living longer. Indeed, a report from the National Center for Health Statistics in early 2026 indicated that life expectancy for someone born in 2024 reached 79 years in 2024. Life expectancy for someone born a year earlier was 78.4. Longer life expectancies are good news, but when people live longer, they may need to tweak their financial approach to ensure they can afford the expenses associated with a longer life. Long-term care insurance can be a part of such changes. Families may have some common questions about long-term care insurance, including whether or not a family member needs it, what it covers and other details. Will I even need long-term care? A recent study from the Department of Health and Human Services concluded that nearly half of all men and 64 percent of women who reach the age of 65 will require significant long-term care during their remaining years. For the 14 percent of people the DHHS estimated will need more than two years of paid care, the cost will exceed $120,000. Long-term care can help to cover those costs, as AARP® notes that Medicare coverage for long-term care covers little more than hospitalization after an illness or injury. Medicaid also might not be an option until seniors have spent all of their savings and exhausted additional assets beyond their homes and vehicles. Won't I be covered by government programs in my golden years? AARP® notes that a survey from the nonprofit organization KFF (formerly the Kaiser Family Foundation) found that it's a widely held misconception that Medicare would finance a long stay in a nursing home if the need arises. However, long-term care insurance can help to finance a stay in a long-term care facility. What are the basics of a long-term care policy? The National Council On Aging notes that standalone long-term care policies typically indicate a benefit amount, a benefit period and an elimination period. The benefit amount refers to the maximum amount the policy pays per day for long-term care services. The NCOA notes that many long-term care policies include protection against inflation so benefits keep pace with rising costs. A benefit period is the duration during which benefits will be paid, while the elimination period is how long new policy holders must wait before benefits can begin. Elimination periods are why it can be vital for adults to take out a long-term care policy before they get sick so they can access their benefits the moment the need for long-term care arises. Who can I consult about a long-term care policy? Insurance agents and financial advisors can help adults and their families navigate long-term care insurance so they can find the best fit for them. Financial advisors can be especially helpful, as AARP notes decisions surrounding long-term care policies may hinge on prospective policy holders' asset portfolio. Long-term care insurance can be the safety net some people need as they grow older and hope to cover the costs associated with living longer.