What is long-term care insurance?

• A. Government funded program
• B. Private policies that an individual can buy to pay for healthcare
• C. Employer sponsored plan
• D. A health savings account

Answer: (B)

Long-term care insurance is private coverage that individuals purchase to help pay for extended care services—such as in-home help, assisted living, or nursing home care—when daily living tasks or medical needs require ongoing assistance over a long period. Regular health insurance and Medicare typically don’t cover custodial or prolonged care, so this kind of policy fills that gap. It’s not funded by the government and isn’t an HSA; while some employers may offer related options, the standard LTC policy is bought by the individual. Policies specify how much coverage you get per day or month, how long benefits last, any waiting period before benefits start, and protections against rising costs. This description matches why private, individually purchased coverage is what long-term care insurance is.