It’s a fact: People today are living longer. Although that’s good news, the odds of requiring some sort of long-term care increase as you get older. As the costs of home care, nursing homes, and assisted living escalate, you may wonder how you’re going to afford long-term care. One solution is long-term care insurance (LTCI).

Most people associate long-term care with the elderly. But it applies to the ongoing care of individuals of all ages who can no longer independently perform basic activities of daily living, such as eating, bathing, dressing, continence, toileting (moving on and off the toilet), and transferring (moving in and out of bed) due to an illness, injury, or cognitive disorder. This care can be provided in a number of settings, including private homes, assisted-living facilities, adult day-care centers, hospices, and nursing homes.

Even though you may never need long-term care, you’ll want to be prepared in case you ever do, because long-term care can be expensive. Although Medicaid does cover some of the costs of long-term care, it has strict financial eligibility requirements—you would have to exhaust a large portion of your life savings to become eligible for it. And since HMOs, Medicare, and Medigap don’t pay for most long-term care expenses, you’re going to need to find alternative ways to pay for long-term care. One option you have is to purchase a LTCI policy. Whether or not you should buy it depends on a number of factors, such as your age and financial circumstances. Consider purchasing a LTCI policy if some or all of the following apply:

You are between the ages of 40 and 84

You have significant assets that you would like to protect

You can afford to pay the premiums now and in the future

You are in good health and are insurable

Generally, LTCI policies works like this: You pay a premium, and when benefits are triggered, the policy pays a selected dollar amount per day (for a set period of time) for the type of long-term care outlined in the policy. Most policies require that certain physical and/or mental impairments trigger benefits. Some policies will only begin paying benefits if your doctor certifies that the care is medically necessary.

Always consult a trusted financial services professional when considering purchasing LTCI. Your friendly hometown bank is a great place to start.