Long-term care insurance is purchased in advance of a person’s disability or infirmity, which leaves them unable to perform some of the activities of daily living, like walking, eating, or dressing.
It also covers the cost of day-to-day care and treatment at home, or in an assisted-care living facility or in a full-time nursing facility, and includes a wide range of medical, personal, and social services. These types of policies vary in coverage,
but normally pay a fixed-dollar amount or the actual costs of care up to a specified dollar amount, for a certain length of time and kind of care.