What does long-term care insurance cover?

Long-term care insurance is specifically designed to provide financial coverage for services that assist individuals with activities of daily living (ADLs) over an extended period. This type of insurance is crucial for those who may need help due to chronic illness, disability, or other age-related issues that make it difficult to perform routine tasks such as bathing, dressing, eating, and mobility.

The primary function of long-term care insurance is to help cover costs associated with prolonged care that might be required in various settings, such as nursing homes, assisted living facilities, or even in-home care. This ensures that individuals can receive the level of care they need while protecting their financial resources.

In contrast, other options like hospitalization costs and emergency medical services typically fall under health insurance rather than long-term care insurance, as they are focused on acute medical needs rather than ongoing support for daily living. Short-term rehabilitation services may indeed provide necessary care but are generally covered by different types of health insurance policies, not specifically categorized under long-term care insurance. Thus, the coverage for daily living assistance over an extended period is the defining feature of long-term care insurance.