What does a long-term care insurance policy typically cover?

A long-term care insurance policy is specifically designed to cover services that assist individuals who are unable to perform basic daily activities due to prolonged illness, disability, or cognitive impairment. The coverage typically includes custodial care, which refers to assistance with daily living tasks such as bathing, dressing, and eating, as well as rehabilitation services aimed at improving the functional abilities of the policyholder after an illness or injury.

This insurance is particularly important for individuals who may need extended support over time rather than just short-term rehabilitation or acute care provided in a hospital setting. The need for such care often arises as individuals age or when they experience chronic health conditions.

In contrast, options that focus exclusively on temporary rehabilitation, hospital stays, or outpatient visits do not encompass the comprehensive care needed over a longer duration or the supportive services that long-term care insurance is meant to provide.