As you get older, you might develop health problems that could make it difficult to cope with everyday tasks. So you may need help to stay in your own home or have to move into a care home.

The State may provide some help towards the costs of this care depending on your circumstances, but there are also other ways to help you cover the cost of care, including using savings and investments.

Long-term care refers to care you need for the foreseeable future, maybe as a result of permanent conditions such as arthritis, a stroke or dementia. It could mean help with activities such as washing, dressing or eating, in your own home or in a care home (residential or nursing).

You should check with your local authority about any support they give. The social services department will assess your care needs and your income and savings. If your income and savings are low the local authority will pay some or all of your long-term care costs.

You may also qualify for Disability Living Allowance if you are under 65 or Attendance Allowance if you are over 65. Attendance Allowance cannot normally be paid if social services or the NHS are funding your care in a care home.

Although social security benefits are the same throughout the UK, other help provided by local authorities varies. So you should find out what your local authority offers.

If you don’t qualify for financial help from the local authority, you will normally have to pay towards the cost of care out of your own income and savings – which could result in you eventually having to sell your own home to meet the costs.

There are many different ways to help you pay for long-term care.

Long-term care insurance

Long-term care insurance is one way of insuring yourself against the cost of long-term care.

There are basically two types of long-term care insurance (LTCI):

Immediate care LTCI - you can buy this when you actually need care; and

Pre-funded LTCI - you can buy this in advance, in case you need care in the future.