As you begin thinking about your retirement, you may want to consider the likelihood that you will need some sort of personal assistance as you age. Maybe you are watching your parents age and see them facing tough health-care decisions. Maybe an elderly parent is living with you now and you are providing the majority of their care.

As you age, it may become necessary for you to receive regular and chronic paid care. According to Kiplinger's Personal Finance,* the average nursing home cost is $200 per day. This doesn't necessarily mean you have to check yourself into a nursing home. Definitions of care can include extended care for specific illnesses, hospice care, or a home aid to help you perform basic living tasks.

As you look ahead, what options will you have?

• Personal Resources
  You may elect to pay for your future personal care needs through personal savings. Many people start out paying their own expenses, deplete their financial resources and then request assistance from Medicaid.

• Medicare
  Medicare is designed to pay benefits for "acute" medical conditions. These are defined as immediate, short-term treatment for a serious illness or injury that is provided in a hospital or at a skilled nursing facility. You can get a copy of the Guide to Health Insurance for People with Medicare by calling 1-800-MEDICARE.

• Medicaid
  Medicaid pays for health care services for the aged, blind, disabled and poor. You must meet financial need requirements established by your state of residence if you are receiving care in that state.

• Medicare Supplemental Insurance
  Medicare Supplemental Insurance is private insurance often referred to as Medigap because it helps pay for gaps in Medicare coverage such as deductibles and co-insurances. Medigap plans may help pay for skilled nursing care, but only when that care is covered by Medicare. Some people use employer group health plans or long-term care insurance to help cover nursing home costs.

• Long-Term Care Insurance
  Long-Term Care Insurance is private insurance. The types of plans, benefits and costs vary widely. The National Association of Insurance Commissions (NAIC) has a free publication called "A Shopper's Guide to Long-Term Care Insurance" that can provide you with information on long-term care insurance. You can also find information on long-term care insurance available from Northwestern Long Term Care Insurance Company, under the Long-Term Care Insurance product section of the site.