Long-term Care Insurance (LTCI)

Quick Look

  • Long-term Care Insurance (LTCI) helps cover your costs should you need additional support.
  • LTCI isn’t just for old people and the earlier you buy it, the cheaper it’s likely to be.


<< Understanding Basic Insurance Needs

Long-term Care Insurance ≠ Disability Insurance

The most important thing to understand about long-term care insurance (LTCI) is that it is not the same thing as long-term disability insurance (LTDI). Disability insurance protects your existing income. LTCI pays benefits towards your care services costs. Costs may include a skilled nursing home, assisted living facility, adult daycare, or home assistance when you can no longer take care of yourself.

While most of us associate needing LTCI when we’re older and in declining health, it’s important to remember that your health can decline for many reasons beyond old age. For example, imagine you’re in a car accident. While your health insurance would pay for your immediate medical needs, it would not cover ongoing care that you may need for months, years, or possibly the remainder of your life. 

The Cost of Long-term Care Insurance

The cost of LTCI varies but the younger you are and/or the better health you are in, the lower the cost will be. Other factors including the benefit amount, how it is paid (daily or monthly), if there is a waiting period before the plan kicks in, and more can also affect your premiums.

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