No one wants to think about requiring long-term care during his or her golden years. Adding to the subject’s lack of appeal is the fact that it’s expensive. Today, with longer life expectancies, you need to have a strategy to pay for this care if you and/or your spouse need it, especially when Medicare isn’t an option for most long-term care expenses. Consider these strategies for privately financing long-term care if you ever need it.

Long-Term Care Insurance

Many insurers sell different options for long-term care insurance including a comprehensive policy that covers both home care and facility care, or a policy for nursing home care only. Choosing long-term care insurance is usually more cost-effective for younger adults who are healthy and at low risk for developing serious illnesses later in life. This insurance can be very expensive for older adults with health conditions.

Reverse Mortgages

A reverse mortgage is a loan that allows you to convert a portion of ownership value in your home into cash. You don’t have to repay this loan until you sell your home. You don’t need to meet income or medical requirements to obtain a reverse mortgage. However, this method of financing long-term care does come with one caveat. If your long-term care costs exceed the amount you have borrowed, you aren’t required to sell your home; however, selling could provide you with enough money to repay the loan.


There are annuities specifically for long-term care services. You could purchase a deferred long-term care annuity, which is available to adults under 85 years old. This annuity would provide you with monthly income during a specified period. Another choice is an immediate long-term care annuity where you make a single premium payment and receive a specified payment each month.

Learn more about private financing for long-term care in this article.