Long-term care insurance is designed to cover the costs associated with long-term services, such as nursing homes, assisted living, and in-home care. These services are often not covered by regular health insurance or Medicare, which typically provide limited coverage for long-term care. The goal of long-term care insurance is to help individuals manage the high expenses of extended care and protect their savings and assets from being depleted by these costs.

Long-term care insurance can be especially important for individuals who anticipate needing assistance with daily activities as they age. It helps cover the costs of care for chronic illnesses, disabilities, or other conditions that prevent them from living independently. Policies vary in coverage, but many will cover care in various settings, including nursing homes, assisted living facilities, and the individual's own home.