How does long-term care insurance function?

Long-term care insurance is specifically designed to assist individuals who require assistance with daily activities due to chronic illnesses, disabilities, or cognitive impairments. This type of insurance provides funds that can be used for various long-term support needs, including home care, assisted living facilities, and nursing homes when necessary. Unlike health insurance, which often covers acute care or short-term medical needs, long-term care insurance focuses on prolonged support for individuals who may not be able to care for themselves over an extended period.

This insurance typically kicks in when a person can no longer perform basic daily activities, such as bathing, dressing, eating, or managing medications. By covering these essential support services, long-term care insurance helps to alleviate the financial burden on families and ensures that individuals receive the necessary care in a setting that best suits their needs, whether that be at home, in a community setting, or in a facility.