Can Long-Term Care Insurance help with dementia care?

Answer:

Yes. All tax-qualified Long-Term Care Insurance policies cover care related to cognitive impairment, including Alzheimer’s disease and other dementias. Benefits can pay for in-home care, assisted living, memory care, or nursing home services. However, you must have a policy in place before you need care. Be sure to start planning now, ideally before retirement. For loved ones who already need extended care, if they don't have Long-Term Care Insurance and your loved one has a life insurance policy, you could sell it for cash now to cover the costs of extended care.