What does long-term care insurance cover?

Long-term care insurance is designed specifically to cover the costs associated with personal and custodial care, which includes services that assist individuals who cannot care for themselves due to chronic illness, disability, or aging. This type of insurance provides financial support for various settings where care may be provided, such as in-home care, assisted living facilities, and nursing homes.

By covering personal care—such as help with bathing, dressing, and eating—and custodial care, which may include assistance with daily living activities, long-term care insurance plays a critical role in helping people manage the financial burden of long-term care needs. The focus of this insurance is on supporting individuals in maintaining their quality of life, rather than just covering acute medical needs or hospital stays, which is typically the focus of standard health insurance.

Choosing this option reflects an understanding that long-term care insurance is distinct from other types of medical insurance, emphasizing its role in helping individuals with ongoing care needs rather than episodic medical emergencies or specific healthcare services such as pharmacy expenses.