By Todd Youngdahl, CFP®
According to the U.S. Department of Health and Human Services, “long-term care (LTC) insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.” (1) Essentially, this type of insurance policy was created to help cover expenses that you might expect to have when you reach 65 or older. Such expenses, for example, include costs of a nursing home, assisted living, or in-home care which all “help with basic personal tasks of everyday life, sometimes called activities of daily living." (2) Because these expenses are not covered by Medicare, LTC insurance can be very important for some. In addition, this type of insurance can help protect family members and heirs from bearing all the costs of long-term care for their loved ones. Before we explain the different types of LTC insurance, let’s go into a brief history of this kind of policy.