Long Term Care

Long-term care (LTC) insurance is a product that has already caught the attention of senior citizens, and while most younger Americans don't really think about LTC, the ideal age to purchase coverage is actually when you’re in your early 50s and in good health. At that point, monthly premiums are lower, and you’re less likely to have a pre-existing condition that disqualifies you from coverage.

No Medicare supplement policy will cover custodial nursing care. And while it is true that state Medicaid programs cover nursing care for the indigent, this means almost all assets and income must be spent down before the state will pick up the tab.

Long-term care insurance can solve the problem in most cases. The latest generation of policies pay for "home care" at a senior daycare facility, as well as care in a skilled or custodial nursing facility. A portion of premiums may be tax-deductible, depending on your age and income. But not all policies are alike, the business is growing (There were just 4.1 million policy holders in 1998.) and LTC plans are constantly evolving, so study both the product and the pricing before making your purchase decision