Long-term care insurance is designed to cover the costs associated with extended care needs that aren’t typically covered by health insurance. This can include expenses for in-homenurse visits, stays in nursing homes or rehabilitation facilities, and hospice care. The policy istriggered when the policyholder is no longer able to perform at least two of the six “activities ofdaily living” independently. Unlike long-term disability insurance, which replaces income,long-term care insurance directly pays for care-related expenses. This type of insurance canbe crucial in preserving personal assets and avoiding the need to spend down savings to qualifyfor Medicaid. When considering a long-term care policy, it’s important to choose one that allows flexibility in care options, such as choosing between inpatient facilities and at-home care plans.
