Which type of insurance is specifically designed to cover long-term care expenses?

Long-term care insurance is specifically designed to cover expenses associated with long-term care services, which can include assistance with daily activities such as bathing, dressing, and eating, as well as care provided in nursing facilities or at home. This type of insurance addresses the financial burden individuals may face when they require extended care due to chronic illness, disability, or cognitive impairment, which typically falls outside the scope of standard health insurance or life insurance policies.

Health insurance primarily focuses on covering medical expenses related to illnesses, surgeries, and urgent care, while life insurance provides a financial benefit to beneficiaries upon the insured's death. Disability insurance offers income replacement for individuals who are unable to work due to a disabling condition, rather than providing coverage for long-term care needs. Consequently, long-term care insurance uniquely fills the gap for those seeking to protect against the potential high costs of long-term care services.