What it pays for
Most policies pay a daily or monthly amount toward care in a nursing home, assisted living, memory care, adult day programs or from a home care agency. They pay for exactly the custodial care that Medicare does not cover.
When benefits start
Tax-qualified policies, which are most policies sold today, start paying when a licensed health professional certifies that the person needs help with at least 2 of 6 activities of daily living (bathing, dressing, eating, using the toilet, continence and moving in or out of a bed or chair) for at least 90 days, or needs supervision because of a severe cognitive impairment such as dementia.
Most policies also have an elimination period, often 30 to 90 days, during which the family pays before the policy starts.
The California Partnership for Long-Term Care
The Partnership is a program of the California Department of Health Care Services and selected insurers. Partnership policies carry a state-approved logo and include inflation protection and care management.
Their key feature is Medi-Cal asset protection: for every dollar a Partnership policy pays in benefits, you can keep a dollar of assets above the normal Medi-Cal limit if you later need Medi-Cal. Those protected assets are also shielded from Medi-Cal estate recovery. You must be a California resident to use the protection.
Only agents with special state training can sell Partnership policies, and only listed insurers offer them.
If your parent already has a policy
Find the policy and call the insurer before choosing care. Ask what kinds of care it covers (some older policies pay only for nursing homes), the daily or monthly maximum, the elimination period, the total benefit left, and whether the provider must be licensed. Every provider on Later Stages shows its state license number, which insurers usually ask for.
Find licensed assisted living Find licensed home care agencies
If you are thinking about buying
Premiums are lower the younger and healthier you are when you buy, and insurers can refuse coverage based on health. Compare the daily benefit, how long benefits last, the elimination period, inflation protection, which settings are covered, and the insurer’s history of premium increases.
“Hybrid” life insurance or annuity policies with a long-term care benefit are another option. They are not Partnership policies.
Common questions
Does long-term care insurance pay for assisted living?
Most current policies do, once the person needs help with 2 of 6 daily activities or has a severe cognitive impairment. Some older policies pay only for nursing homes, so check the policy.
What is a California Partnership policy?
A long-term care insurance policy approved by the state that protects one dollar of your assets from Medi-Cal’s limit for each dollar the policy pays in benefits.
Where can I get unbiased advice?
HICAP, California’s free health insurance counseling program: (800) 434-0222.
Sources
Figures checked November 14, 2026. Rules and amounts change, usually each January (Medicare, Medi-Cal) or December (VA). Confirm with the agency before you decide.
Later Stages gives information, not legal or financial advice. For decisions about benefits, transfers or trusts, talk with the agency, HICAP at (800) 434-0222, or an elder law attorney.