Step 2: Financial planning

Review your current insurance coverage.

Do you know if your current health-care insurance would pay if you needed to be in a nursing home or needed care at home for an extended illness? To learn what is covered and what is not, review the policies you have with your insurance advisor or employer’s benefits counselor.

Decide if you can—or want—to pay for long-term care privately.

If you don’t have coverage for long-term care or prefer to pay using your own resources, do you know if you would be able to cover all the costs with your retirement income and savings?

Think about the financial resources you have and how you feel about using them to pay for long-term care. This could include various sources of income (for example, Social Security, pension, interest income, dividends from investments, or payments from a 401(k) or IRA), as well as cash, savings, stocks and bonds, and your home.

Look for other resources that may cover your long-term care expenses.

Consider all your financing options, including long-term care insurance. Review these options carefully to make sure you understand all the details, eligibility requirements, and costs. And remember, you don’t have to depend on just one financing option. The best plan for you may include a combination of financing options.