Focus on financial protection. Around 70% of people 65 and over can expect to require some form of long-term care at some point in their lives. While Medicare might cover some short-care needs, don’t let long-term care drain your assets. Long-term care insurance is a safety net designed to protect you financially if you need assistance with daily living activities (ADLs) for the long haul.

Unlike health insurance that covers medical treatments, long-term care insurance helps pay for custodial care needs like bathing, dressing, eating, toileting, and transferring (moving in or out of bed, chair, or wheelchair).

Long-term care insurance typically reimburses you for a daily or monthly amount up to a predetermined maximum for covered services. These services can be received at home, in an assisted living facility, or even a nursing home.