What is the primary purpose of long-term care insurance (LTC)?

The primary purpose of long-term care insurance (LTC) is to offer daily care for long-term illnesses or disabilities. This type of insurance is designed to help individuals who require assistance with daily activities due to chronic conditions, disabilities, or cognitive impairments such as Alzheimer's disease. Unlike other forms of insurance that may cover short-term medical emergencies or surgical procedures, LTC specifically addresses the ongoing care needs that can arise as people age or face debilitating health issues.

Long-term care can occur in various settings, including in-home care, assisted living facilities, or nursing homes, and it often encompasses services such as personal care assistance, custodial care, and therapy services. This coverage is critical because medical insurance typically does not cover the costs associated with this kind of extended care; hence, LTC provides financial protection against the potentially high costs of long-term care.

By focusing on helping individuals maintain a certain quality of life when facing prolonged health challenges, long-term care insurance meets a specific need that is often overlooked in traditional health insurance plans.