Long-term care insurance is designed to provide coverage for care in a nursing home or at a residence that is not covered by Medicare. Three possible levels of care may be included: Skilled, Intermediate, or Custodial.
Coverage is not restricted to Medicare-covered services and you may choose what benefits are included in a policy. For higher premiums, additional benefits may be included.
Coverage is not standardized, so you must carefully compare policies. Also, premiums vary according to your age when you apply for a policy. Generally, as a person gets older, long-term care policies become more expensive.
Also, be sure to look at the underwriting restrictions when considering this type of policy. They can be severe.