Long Term Care insurance is not required by the government; however, recent legislative initiatives have been introduced, including Assembly Bill AB 567, proposing taxes for those unprotected by private coverage. Similar initiative have been passed and implemented in states such as Washington. Statistics suggest that 70% of people will need long term care at some point within their life.

Living benefits of life insurance can include riders that reduce the death benefit of the face value of a life insurance policy. Some life insurance policies offer a chronic illness or long-term care rider that allocates a portion of the death benefit to someone who meets the specified benefit provisions. Benefits are typically payable for up to a portion of the death benefit and typically paid in the form of an indemnity. A stand alone long-term care policy offers coverage based on a number of factors directly related to someone's need for palliative care, including the reduction of at least 2 of 6 ADLs (Activities of Daily Living). These policies typically include policy enhancements for home-based care, durable medical equipment, inflation protection, and restoration of benefits. These policies are designed for someone who has aged, needs palliative care, and is not likely to recover.

The amount of premium paid for long term care is based off of someone's age, the benefit multiplier, dollar benefit per day, and additional benefits such as home-based care and inflation protection. Generally speaking, the older the person is when obtaining coverage, the more they will pay in premium on a monthly basis. Rates for coverage are age-banded and gender specific.

Medicare Part A includes insurance benefits for those who are hospitalized and needing rehabilitation treatment to a maximum number of days. If a person has been determined to have a condition and/or symptoms that are not recoverable, they will stop receiving Medicare benefits. Medicare does not provide palliative care. Palliative care includes homemaking, cooking, cleaning, transferring, toileting, bathing, and other tasks associated with the quality of life of someone with a serious illness.