Most people never plan for the day they need help with everyday tasks, and then the bills arrive. Long-term care is expensive, and Medicare does not pay for most of it. Long-term care insurance is one way to protect your savings and keep your family from becoming full-time caregivers. DGS Benefits has helped New Jersey families plan ahead for 35 years, and we will walk you through the options in plain English.
What is long-term care?
Long-term care is help with the basics of daily life, such as bathing, dressing, eating, and moving around, or supervision for someone with memory loss such as dementia. It can happen at home, in an assisted living community, or in a nursing home. It is different from medical treatment, and that difference matters when it comes to who pays.
What does long-term care cost in New Jersey?
New Jersey is one of the more expensive places to need care. According to CareScout's 2025 Cost of Care Survey, the median annual costs in New Jersey are:
| Type of care | Median annual cost in NJ |
|---|---|
| Nursing home, private room | $173,375 |
| Nursing home, semi-private room | $153,300 |
| Assisted living community | $101,550 |
| Non-medical home care (caregiver) | $86,944 |
For comparison, the national median for a private nursing home room is $129,575. Most care costs in New Jersey rose again from the year before.
Who pays if you do not have a plan?
Medicare does not pay for long-term custodial care, and neither does a Medicare Supplement plan. Medicaid may help if you meet strict income and asset limits, which usually means using up most of your savings first. Otherwise, you pay out of pocket, or your family steps in. If you are on Medicare, see our page on Medicare Supplement plans to understand what it does cover.
How long-term care insurance works
A long-term care policy pays a set benefit when you need help with daily activities or have a cognitive condition such as dementia, according to the terms of the policy. Key choices include:
- Daily or monthly benefit. How much the policy pays toward your care.
- Benefit period. How long payments last, such as a few years or longer.
- Elimination period. A waiting period, often measured in days, before benefits begin.
- Inflation protection. An option that helps your benefit keep up with rising care costs.
Traditional vs. hybrid policies
Traditional long-term care insurance is designed only for care. If you never need care, you do not collect. Hybrid policies combine life insurance or an annuity with a long-term care benefit, so there is a death benefit or other value if you do not use the care coverage. Hybrids often cost more up front but can be easier for some people to accept. We can show you both and explain the tradeoffs. See our page on life insurance in NJ for the life side of the picture.
When should you buy?
There is no perfect age, but many people start looking in their 50s or early 60s. The younger and healthier you are, the more likely you are to qualify and the lower the price. If you wait until you need care, it is usually too late to buy. Buying earlier can lock in better options.
Who should consider it?
- People with savings and a home they want to protect
- Married couples who want to avoid one spouse's care draining the other's retirement
- Anyone with a family history of conditions like dementia
- People who do not want to depend on their children for care
If you have very limited assets, Medicaid may be the more realistic path. If you have a large amount set aside, you may be able to pay for care yourself. We will tell you honestly if long-term care insurance does not fit your situation.
How we help
We look at your age, health, budget, and goals, then compare policies from various carriers so you can see the real differences. We also explain what is and is not covered before you decide. You can also review final expense insurance and disability insurance as part of a complete plan.
Frequently asked questions
Does Medicare cover long-term care?
Not custodial care, which is the help with daily living that most people need. Medicare pays for limited skilled nursing care after a hospital stay under specific rules.
What if I never need care?
With a traditional policy, you do not collect, much like car insurance you never use. Hybrid policies can return value to your family. We will show you how each works.
Can the premium go up?
With some policies, yes. Insurers may request rate increases, subject to state approval. Ask us how a policy handles this before you buy.
Can I get coverage if I have a health condition?
It depends on the condition. Some people qualify at a higher price, and others do not. This is another reason to look earlier rather than later.
Is a consultation really free?
Your first consultation is free. Contact us to get started.
DGS Benefits Inc. is a licensed insurance broker in the State of New Jersey. We do not offer every product available in your area.
Cost figures are national and New Jersey medians from CareScout's 2025 Cost of Care Survey and vary by provider and location. Long-term care policies have exclusions, limitations, waiting periods, and terms for keeping them in force, and are subject to underwriting approval.
DGS Benefits does not provide tax or legal advice; consult a qualified professional.