How Do I Pay for Long-Term Care?

Planning for long-term care is critical while you're still young and healthy. The cost of long-term care in the U.S. only continues to rise as inflation worsens. If you develop a serious illness, injury, or disability that requires long-term care later in life, you don't want to be left without a plan to pay for it. Having long-term care insurance is just one option that can help you cover hefty ongoing medical costs.

An independent insurance agent can help you get long-term care insurance and review your other long-term care planning options. They can help you find the right coverage to pay for various types of long-term care, including nursing homes, assisted living, and home healthcare. But first, you can use our guide to paying for long-term care to learn more about your options.

What Is Long-Term Care and Who Needs It?

Long-term care refers to ongoing care and assistance with daily activities that are required for an extended period of time, typically 12 months or longer. Common long-term care services and facilities include:

Many people need long-term care as they age, often due to chronic conditions or disabilities. Seniors are the most common candidates for long-term care services and coverage. However, it can be beneficial to purchase long-term care insurance in your 50s to lock in lower premium rates than if you wait until you're older and have health issues. 

How Much Does Long-Term Care Cost?

The average cost of long-term care ranges from a little over $2,000 to well over $10,000 per month. The cost of LTC can depend on your location, the length of treatment needed, and the level of care required. Here are some average costs for various common long-term care services this year. 

Average monthly cost of long-term care services in 2026

What Are My Options for Paying for Long-Term Care?

You can pay for long-term care services and facilities out of your own pocket using savings and investments. However, long-term care insurance is a coverage designed specifically to pay for LTC, though not everyone can qualify for a policy, especially if they have a pre-existing condition. You can also use veterans' benefits to pay for LTC if you qualify.

There are a couple of alternatives to long-term care insurance, including hybrid life insurance policies with LTC benefit riders. You might also be able to use Medicaid to pay for LTC if you meet the financial eligibility requirements, which vary by state. However, it's important to be aware that Medicare is not designed to cover long-term care services.

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Does Health Insurance or Medicare Pay for Long-Term Care?

No, health insurance and Medicare typically don't provide coverage for long-term care. There may be exceptions for short-term skilled nursing or rehabilitation services, but you'll need to review your specific policy to be certain. Having long-term care insurance or another alternative plan to pay for LTC is critical because you likely won't be able to rely on health insurance or Medicare.

What Is Long-Term Care Insurance and How Does It Work?

Long-term care insurance is designed to pay for the expenses related to ongoing medical care and extended stays in senior treatment facilities such as nursing homes or assisted living. Many types of LTC insurance are available, including traditional and hybrid policies. Workers might also be eligible to receive group coverage through their employers. LTC insurance provides a daily benefit that can help cover any of the following:

It's often recommended to buy long-term care insurance in your 50s to get cheaper rates, but you can still purchase coverage in your 60s. LTC insurance also offers tax-deduction benefits if you meet certain requirements. 

Can I Use Life Insurance to Pay for Long-Term Care?

Yes, some life insurance policies are designed to help cover LTC. These policies, often referred to as hybrid life and LTC insurance, are essentially a combination of the two types of coverage. You might also be able to add a long-term care coverage rider to an existing life insurance policy. 

You can use a life insurance policy's cash value or accelerated death benefit to help cover the cost of LTC services and facilities. An independent insurance agent can help you find life insurance with long-term care benefits, or hybrid long-term care insurance.

What If I Can't Afford Long-Term Care Insurance?

There are a few alternatives if you can't afford LTC insurance, such as relying on family members to provide ongoing care. Long-term care insurance can be expensive, but it's typically not as expensive as the cost of ongoing medical care. You can work with a financial planner to look into asset protection strategies or reverse mortgages to help pay for long-term care. 

You might also be able to rely on Medicaid to cover LTC if you meet your state's income and family size requirements for coverage. Additionally, an independent insurance agent can help you look into annuities, which can be used to help cover the costs of long-term care. 

How Can I Plan Ahead for Long-Term Care Costs?

It's often recommended to start planning for long-term care in your 50s-70s, but some people begin planning as early as their 40s. However, the ideal age to lock down LTC coverage is in your 50s. If you're younger and healthier when you first buy coverage, you'll have access to more policy options and lower premium rates. An independent insurance agent can help you with your long-term care strategy and find the right policy. 

How Can an Independent Insurance Agent Help?

Independent insurance agents have access to multiple long-term care insurance companies, so they're free to shop and compare policy options and quotes for you to find the best deal. They'll make sure you walk away with a policy that includes all the coverage you need from a reputable carrier. And down the road, your agent can help you file LTC insurance claims and update your coverage when necessary.