I looked into LTC insurance a while back and concluded it didn’t provide much downside protection. Some of the details are a little foggy, but the jist of it is you have to be in reasonably bad shape to qualify for the benefits. Most people likely would enter some sort of assisted living before they are bad enough that the insurance kicks in so you will already be drawing down assets.
Some of the problems with LTC is that they typically have monthly limits, which might not be enough to protect your assets depending on your level of care. There is also usually a time limit, like five years or something, after which it won’t protect your assets either. You can buy lifetime policies, but they are prohibitively expensive.
If you have a reasonable amount of assets, like say equity from a house, you can buy into an LTC facility. As your care needs increase, they will escalate the amount of care you get. When the buy in is exhausted, you switch to Medicaid and they don’t kick you out. We’re looking into facilities for my MIL, and some of the facilities are quite nice (as in, I wouldn’t mind living there), and the buy-in is negotiable.
So if you have some assets, but not a huge amount, you are protected by Medicaid so you don’t need LTC insurance. If you have a ton of money, also you don’t need LTC insurance. If you want to leave an inheritance, get some of the money out of your name before the five year look back starts, and use the Medicaid backstop.