With a long term care plan you use any lump sum you have available to buy a care plan.
The provider in turn offers to pay out money to help fund your care fees for as long as you live. There are two options when it comes to care plans, the main difference is whether you need care funding now or in the future.
Immediate Funding - if you require care funding now.
Deferred Funding - if you are planning for care funding in the future.