According to the Department of Human Services and Health 40% of individuals over the age of 65 will need some type of in-home care for at least a year. Around one third of the population will go to a nursing home and about half of those that do go only 30% will stay for up to three years.

The cost for this care is rather expensive and if you don’t have a plan it can be catastrophic. So what are some options to make sure that you are protected from dreadful costs? Below are 4 options according to Thomas A. Davis of Elizabethton Star, that can help prepare you from the rather expensive costs of paying for some types of in-home care.

1. Self-insure: A ‘Self-funded’ approach that arranges an employer to provide health or disability benefits using the companies funding. The employer assumes the financial risk for payment.
2. Long-Term Care Insurance: LTC covers your qualified long term care costs. If you are purchasing a policy your annuals will more likely be lower if you are of a younger age. The premiums will pay for home health care, long term care, or home stay service. There are no death benefits or cash values.
3. Hybrid Insurance: Hybrid Insurance provides long term care insurance plus life insurance or death benefit. If you do not end up needing long term care you are still covered and will protect your premium. Premiums tend to be higher due to having the death benefit.
4. Life Insurance with LTC/Chronic Illness rider: If choosing a permanent policy you can accelerate all or just part of the death benefits that would help pay for LTC expenses. There is more flexibility with paying your premiums than a hybrid policy would allow but you may be required to invest a larger commitment. If you do not end up needing long term care you still have the benefits of life insurance.

Choosing one of these options to help protect against catastrophic cost will benefit you. When it comes to LTC it’s better to plan ahead than wait until it’s too late.