What is long-term care insurance designed to cover?

Long-term care insurance is primarily designed to cover services that help individuals with the activities of daily living (ADLs) over an extended period. This includes assistance with personal care needs such as bathing, dressing, and eating, which often occur as people age or experience chronic illnesses or disabilities. While stays in a nursing home are a significant component of long-term care that this type of insurance covers, the coverage is not limited solely to institutional care.

Moreover, long-term care insurance can also cover other supportive services, which include home care services, assisting individuals in their own residences. This relates to the comprehensive nature of long-term care, as it aims to help individuals maintain a good quality of life, whether that's in a nursing home or at home.

In contrast, college tuition costs and medical costs for short-term illnesses fall outside the scope of long-term care insurance. These areas are typically addressed by other types of insurance or funding mechanisms, like student loans or standard health insurance, which does not focus on long-term assistance for chronic care needs.