Pros:

• High chance of needing care
  
  
• Protects your assets and your quality of living
  
  
• Maintains your financial independence
  
  
• Relieves the financial burden on your family
  
  
• Gives you flexibility in choosing care

Cons:

• No guarantee you’ll need benefits
  
  
• Expensive, especially individual policies
  
  
• Probable premium increases
  
  
• Could be difficult to qualify for benefits under some policies
  
  
• Benefits may not keep pace with inflation

You can buy either a reimbursement policy, which pays benefits as you submit claims for covered expenses, or a defined benefit plan, which pays up to a specific amount per day regardless of actual costs — though never more than the costs.

MEDICARE AND MEDICAID
Medicare is a government-sponsored insurance program that covers hospital and medical expenses for people over age 65, the disabled, and people suffering from permanent kidney failure. It covers a limited amount of home health care and hospice care, but not long-term care.

Medicaid is a state-run program that provides medical assistance for low-income people. Medicaid will cover the cost of a nursing home or adult daycare facility, but only after you can no longer pay on your own. The program will only pay for nursing homes that meet Medicaid standards, and many nursing facilities choose not to accept Medicaid patients, since privately funded patients pay more.