Any senior who subscribes to senior magazines or listens to senior oriented programs on TV or radio has heard about Long Term Care Insurance (LTCi) and about the importance of having this vital piece of family and asset protection in place well before you actually have to use it. request a quote >>

Recently, a senior with a LTCi policy called the company for a policy review. She is 78, has owned her policy for "a hundred years," as she put it, and recently realized that the old policy was nursing home only. It is dirt cheap. Even with a recent increase, it only costs her $72.00 a month, a tiny fraction of what it would cost if she were trying to purchase it at her age today. But she was concerned because she is still in fairly good health, has a retirement home in a gated community that she purchased within the last five years, and knows that she wants to be able to stay in her own home when she needs care.

That brings up the issue of levels of care. Medicare and Medicaid only cover care in a nursing home. Medicare covers 100 days of skilled care only, and Medicaid requires a total spend down of assets before a person can qualify. But given a choice, seniors would much rather stay in their own homes, and most of them really don't want Medicaid.

The term Long Term Care refers to any post-hospital or convalescent extended care program. It can take place in a nursing home, an assisted living facility, or in a private home. You can purchase Long Term Care Insurance on the basis of your own preferences, and can often get a lower premium if you have coverage that specializes in a particular level. The various levels and types of facilities are:

The least expensive Long Term Care polices are Home Care Only and Facility Based Only. Home care is exactly what it sounds like. You receive care in your own home or in a relative's home. Facility based could include assisted living as well as a nursing home. In either case, the policy could say "facility based." You will need to ask your agent if assisted living is included, and double check the policy as well.

There are no policies that pay for assisted living only. All companies include it with either the home care, or the nursing home care as well as with the full blown Long Term Care Insurance, which is, of course, the most expensive. However, don't confuse senior assisted living facilities with retirement or "senior homes" in which seniors are capable of independent living. No company will pay for you to live in a senior home. You must require some level of care as determined by your doctor and provided in your policy.

Most nursing homes have sections for custodial or intermediate care as well as wings for skilled nursing care. Some hospitals also have skilled nursing departments for those recovering from surgery or a major illness who need temporary skilled care. Whether the nursing home covers skilled care or is a custodial/intermediate care facility only, a facility based LTC policy will pay the bill.