While in the past family members, particularly women in the family, have carried out the duties associated with such care for elderly family members and those who cannot care for themselves, our society has changed in such a way that this arrangement may not be possible, especially with most women now working outside the home. In addition, it is important to understand that the need to care for a family member on a full-time basis can quickly place a tremendous amount of stress on the care-giver and the rest of the family as well.

Long term care insurance pays benefits when it has been determined by a physician that a person can no longer provide their own basic needs. This could be due to age or age related illnesses or it could be due to an accident. Such a policy will typically provide coverage for all levels of care in nursing homes that are licensed by the state. The policy may also provide coverage for home health care as well as an assisted living home.

There may be a waiting period during which time there will not be any benefits paid. Once the waiting period has been satisfied a maximum dollar amount will be paid for each day care is provided. If the per day cost of the facility exceeds the maximum dollar amount provided under the policy, you will need to pay the difference out of pocket.

Depending on the type of coverage policy you select it may also be possible to take advantage of what is known as an inflation adjustment feature. This will increase your per day benefit to allow for higher costs that occur as a direct result of inflation.

The age of the persons covered under the policy and the level of benefits you purchase will determine the amount of your premium. If you opt for the inflation adjustment feature and wish for more services to be covered under the policy, the premium will typically cost more. In addition, if you are older when you take out the policy, you can also expect to pay higher premiums because there is a higher degree of risk that you will need to use it. Once the policy is purchased; however, you can usually rest assured that premiums will remain fairly level as long as the policy remains in effect.

Long term care would make a huge difference to your quality of life and well being in old age for you and your family members, so if you think it is something you would like to make use of, the sooner you look into insurance for it, the better. However, you should make sure to be clear its policies before taking out.