Many people are unable to rely on children or family members for support and buy long-term care insurance to help cover out-of-pocket expenses. Otherwise, long-term care expenses would quickly deplete the savings of an individual and/or their family.

While the costs of long-term care differ by region, it is usually very expensive. In 2019, for example, the average cost of a private room in a skilled nursing facility or nursing home was $102,200 a year, according to a report on long-term care by Genworth. A home health aide costs an average of $52,624 annually.

Long-term care insurance usually covers all or part of assisted living facilities and in-home care. Medicaid rarely does. Full home care coverage is an option with long-term care insurance. It will cover expenses for a visiting or live-in caregiver, companion, housekeeper, therapist or private-duty nurse up to seven days a week, 24 hours per day, up to the policy benefit maximum.