a nursing facility and average from $10 to more than $75 per hour, depending on the services needed and regional cost differences. Round-the-clock care at home by a nurse could cost more than $300,000 per year.

Government programs like Medicare offer little protection against the loss of retirement assets from long-term-care expenses. Medicare primarily pays for short nursing home stays and rehabilitation.

To receive Medicaid one must meet state and federal guidelines for income and assets. Consequently, many people must pay for long-term care out of their own pockets until their assets shrink enough for them to become eligible for Medicaid.

Essentially, what long-term-care insurance premiums buy is a pot of money from which a daily dollar benefit is paid for the services used. The insured's premiums depend upon the age at which the insured takes out coverage, the amount of the daily dollar benefit, the number of years of coverage and other benefits that can be added, such as a rider to adjust for inflation. Some long-term-care insurance policies also offer other types of coverage such as hospice care and respite care.

To buy effective and affordable long-term-care coverage, you must decide what combination of benefits, services and costs best meet your needs and budget.

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