Define "long-term care insurance".

Long-term care insurance is fundamentally designed to provide coverage for the costs associated with long-term care services. This includes a variety of support options such as stays in nursing facilities, assisted living accommodations, or in-home care for individuals who may require assistance due to chronic illnesses, disabilities, or cognitive impairments. The significance of this insurance lies in its ability to help policyholders manage potential expenses that can arise from needing help with daily living activities over an extended period, which can significantly impact one’s financial planning and quality of life.

Long-term care is distinct from other types of health insurance, as it specifically focuses on non-medical care needs. Unlike emergency medical situations or general health care costs, which are typically covered under standard health insurance plans, long-term care insurance addresses the unique challenges presented by prolonged care requirements. Therefore, it provides a crucial financial safety net for individuals planning for their future needs in terms of care.