Setting aside your own savings
Helps withFull control and flexibility. No health questions.
Watch forA long care need can use up savings meant for a spouse or heirs.
Part 1
What long-term care is
Long-term care is help with everyday activities like bathing, dressing, eating or moving around, usually because of aging, an illness, an injury or memory loss. Most of it isn't medical care. It can happen at home, in an assisted living community, or in a nursing home.
Almost 70%Chance that someone turning 65 will need some type of long-term care1
3.7 vs. 2.2 yearsAverage time women and men need care1
Care needs vary widely. Some people need help for a few months, others for years. That uncertainty is what makes planning hard, and worthwhile.
Part 2
Who pays for it?
Medicare: generally not
Medicare doesn't pay for long-term care services, including care in a nursing home or in the community. Medicare Supplement (Medigap) policies don't cover it either.2
Medi-Cal: for people who qualify
Medi-Cal, California's Medicaid program, can pay for long-term care for people who meet its income and asset rules. Starting January 1, 2026, Medi-Cal considers assets again for people 65 and older, people with disabilities and nursing home residents. The limit is $130,000 for one person, plus $65,000 for each additional household member.3
The rules about which assets count are detailed. Check with your county Medi-Cal office or an elder law attorney.
You and your family: most often
Without insurance or Medi-Cal, care is paid from savings and income, and much of it is provided by unpaid family members.
Part 3
Common ways to plan
Most families use a mix. None of these is right for everyone.
Traditional long-term care insurance
Helps withPays toward care costs up to the policy's limits.
Watch forRequires health approval. Premiums are generally not locked in and can increase. If you never need care, the policy may pay nothing.
Life insurance or annuities with long-term care features
Helps withCan help pay for care if needed, and may leave money to heirs if care isn't needed.
Watch forOften requires a larger up-front or ongoing payment. Features, costs and limits vary a lot between policies.
Family care plans
Helps withCare from people you trust, often at home.
Watch forReal costs for caregivers, including lost work and stress. Worth discussing openly before it's needed.
Medi-Cal planning
Helps withCan cover care for people who qualify.
Watch forAsset and income rules, limited choice of facilities, and rules that can reach the estate later. Work with an elder law attorney.
Part 4
When to start
Insurance options depend on your health when you apply, so they can narrow as health changes. Looking while you're healthy usually means more choices. The right time is whenever you can calmly weigh your options.
Whatever you decide about paying for care, these steps help any family:
- Talk with family about where you'd want care and who might help.
- Sign a durable power of attorney and an advance health care directive.
- Keep a simple list of accounts, policies and contacts in one place.
- Review any existing policies so you know what they actually cover.
Want to talk through your options?
A short conversation can help you understand the trade-offs and decide what to look into further.
Book a time with Kevin Kevin is a licensed insurance professional and may be compensated if you buy insurance. Legal and Medi-Cal questions should go to an elder law attorney.Keep reading
Sources
- Administration for Community Living (U.S. Department of Health and Human Services), LongTermCare.gov, "How Much Care Will You Need?" Page last modified February 18, 2020; accessed November 9, 2026.
- Medicare.gov, "Long-term care". Accessed November 9, 2026.
- California Department of Health Care Services, Medi-Cal asset limit flyer ("Asset rules are changing on January 1, 2026"). Accessed November 9, 2026.