You may be concerned about insurance coverage in your old age. It's hard to predict how long you'll live, whether you'll end up in a long-term care facility or nursing home, or just need aid in your own home. If you do, how will you pay for it? Many people choose to buy long term care insurance, but how do you know whether this is right for you? And how do you choose a provider and type of long term care insurance? It's important that you don't choose the wrong type, or an unreliable insurance company.

The first thing to consider is the cost. If you struggle to pay your everyday expenses and monthly bills, or if your only form of income is Social Security, then the last thing you need is to add another monthly payment to worry about. After all, there's no point in paying for it now if you have to cancel it later, before you ever get to enjoy the benefits. However, if you have enough assets and a chunk of money in the bank, or a significant long-term income, it's probably a wise investment, as long term care insurance will help you to remain financially independent after you begin to need a bit of help with everyday living. Your family members will be grateful that you planned ahead.

So how do you decide what type of long term care insurance policy is right for you?

Like most health insurance, long term insurance only covers care from a specified network of providers, hospitals and nursing homes. Some types of policies and companies cover percentages of your future health care costs, while others offer a fixed amount for each day of care. Be cautious in your choices, and be certain that the long term care insurance you choose includes inflation protection, as you can't predict how much each day of care will cost decades in the future.

It's important to consider any pre-existing conditions you may have, as many long term care insurance companies will charge you extra or even not accept you at all. You should also look into what sort of care is covered by the policy. Typically long term care insurance is much more limited in its network of providers than traditional health insurance. As you are planning for the future, be sure to select a reputable company that's been around for a long time. There is no point in giving your money to a company that goes out of business long before your old age.

And don't forget to read the fine print. If you don't understand some of the terms used, make sure your insurance broker explains them to you clearly. It's your own health; look after yourself and you won't regret it.