What is long-term care insurance?

Long-term care insurance is private insurance that pays for services and support for people who need long-term care, including help with activities of daily living, at home, in assisted living or in a nursing home. The National Institute on Aging says exact coverage depends on the policy, and the price depends on the services covered, your age when you buy and any optional benefits.

Usually, yes. The National Institute on Aging says long-term care insurance usually provides coverage for care at home, but policies differ on who can deliver it: some pay only for a professional service, while others will pay a family member. Policies can also cover assisted living and nursing homes. Read the policy or ask the insurer before arranging care so you know what will be paid.

Some policies do. The National Institute on Aging says that in some cases only a professional service will be paid, while in others the policy will pay for a family member to provide care, so contact the insurer to learn the details of your policy. Separately, many states offer some form of pay for family caregivers, most often through Medicaid home and community-based services.

No. The Alzheimer's Association says that once a person is diagnosed with Alzheimer's, they will not be able to apply for long-term care insurance coverage. The National Institute on Aging adds that people in poor health may not qualify, and that buying can be a good choice for younger, relatively healthy people at low risk of needing care soon. That makes it something to consider well before any diagnosis.

Most policies say they cover Alzheimer's disease, but the Alzheimer's Association advises checking closely. If a policy is already in place at diagnosis, look at when benefits start, since most require a defined level of physical or cognitive impairment, the waiting time called the elimination period, the daily benefit and any inflation adjustment, how long benefits last, any lifetime maximum, and which care settings are covered.