What is the main purpose of long-term care insurance?

Long-term care insurance is primarily designed to cover extended nursing home or home care services. This type of insurance is important because most health insurance plans, including Medicare, typically provide limited benefits for such care, especially for long durations. Following a chronic illness, disability, or age-related conditions, individuals may require assistance with daily activities such as bathing, dressing, eating, or managing medications. Long-term care insurance helps to finance these often costly services, ensuring that individuals can receive the necessary care without depleting their savings or burdening their family financially.

The distinction of long-term care insurance from other types of insurance is significant; it specifically targets care beyond what is typically classified as acute care or short-term rehabilitation. Other options, such as covering only hospital stays or providing emergency medical coverage, do not address the ongoing care needs that long-term care insurance is specifically structured to manage. Similarly, while supplemental retirement income is an important financial aspect of aging, it does not align with the primary goal of facilitating direct care services.