This is the type of coverage that most people think of when they think of long term care insurance. It is much like your auto insurance, homeowners insurance, health insurance, and pretty much every other type of insurance. You purchase the insurance “just in case”. There are numerous ways to customize a plan from something that would pay for a portion of your care for a short period to something that would likely pay for all or most of your care costs for an extended period of time. There are discounts for spouses and for those in good health.
If care is never needed, there is no return of the money that was spent. If care IS needed, it doesn’t take long to recoup the amount of money you have paid over the years.
The premiums for these policies may be tax-deductible. If you have a Health Savings Account (HSA) you may be able to pay all or some of your premiums from the pre-tax HSA dollars.