How to Plan Ahead in the Event of Long-Term Disability

An alternative to qualifying for Medicaid or paying all long-term care costs out-of-pocket is to purchase long-term care insurance (LTCI). LTCI is designed specifically to pay for custodial long-term care services. There are three basic types of policies: nursing home only policies covering care in a nursing home or, on occasion, care in an assisted living facility; home health care only policies; and comprehensive policies providing nursing home, assisted living, and home or community benefits. There are a few rules of thumb to follow before purchasing a long-term policy.