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

The main purpose of long-term care insurance is to cover the costs of long-term care services, such as nursing homes or in-home care. This type of insurance is specifically designed to provide financial assistance for individuals who require ongoing assistance due to chronic illnesses, disabilities, or the aging process. As people age or experience health issues, they may need services that regular health insurance does not fully cover, such as assistance with daily living activities, personal care, or custodial care.

Long-term care insurance helps alleviate the financial burden that can result from the need for these services, ensuring that individuals can access the necessary support without depleting their savings or relying solely on family members. This coverage is essential in planning for potential future needs, as the cost of long-term care can be significant and persistent over time.

While standard medical expenses, preventive care, and short-term rehabilitation services are important aspects of healthcare, they fall outside the specific scope of long-term care insurance, which focuses on an extended duration of care and support for daily living activities rather than short-term medical needs or preventive measures.