What is long-term care (LTC) insurance designed to cover?

Long-term care insurance covers custodial care — help with activities of daily living (ADLs) — that health insurance and Medicare do not. The six standard ADLs are bathing, dressing, eating, toileting, transferring (moving from bed to chair), and continence. Benefits typically trigger when the insured cannot perform two or more ADLs (definitions vary by policy) or has severe cognitive impairment. Settings covered: nursing homes, assisted living facilities, adult day care centers, and care at home from family or hired caregivers. Medicare covers short-term skilled nursing care after a hospital stay but does not cover ongoing custodial care; Medicaid covers nursing home care only after assets are depleted to state poverty levels. LTC insurance helps avoid asset depletion or family caregiver burden. Hybrid life-LTC policies have become popular.