What does long-term care (LTC) insurance cover?

Long-term care insurance covers the cost of services for people who can no longer perform activities of daily living (such as bathing, dressing, eating, transferring) on their own, or who need supervision due to cognitive impairment. Covered settings can include nursing homes, assisted living facilities, adult day care, and in-home care. These custodial services are generally not covered long-term by standard health insurance or Medicare, creating a coverage gap that LTC insurance addresses. Benefit triggers (typically inability to perform a number of activities of daily living, or cognitive impairment) determine when benefits begin. Understanding what LTC insurance covers is standard exam content.