A long-term care policy covers the cost for people with long-term health issues, such as a chronic medical condition, disability, or a disorder. Policyholders are reimbursed for services given in certain locations, including a their own home, nursing facilities, assisted living communities, or an adult care center.

The cost of long-term care insurance is determined by different factors, including age, health, gender, marital status, and the insurance company providing the policy. Insurance plans can range from a $3,000 to $10,000 per year for policies with ongoing premiums to hundreds of thousands of dollars for a single payment policy with many options in between. These high prices often drive seniors and those close to retirement to search for alternative options for insurance. What’s more, if a person is already in poor health when they apply for a policy, they may not qualify for long-term care insurance at all.