Long term care insurance is a type of coverage designed to help pay for services that assist individuals who are unable to perform basic activities of daily living or who require substantial supervision due to cognitive impairment. Benefits may cover care in the home, assisted living facilities, adult day care centers, or nursing homes. Policies specify benefit amounts, benefit periods, elimination periods, and inflation protection options. Traditional long term care insurance is typically purchased with ongoing premiums and does not provide a death benefit beyond possible refund features, but newer hybrid products combine LTC benefits with life insurance or annuities.

In practice, advisors recommend long term care insurance to clients who are concerned about protecting their retirement savings, maintaining independence, and reducing the caregiving burden on family. They compare policy designs, highlighting daily or monthly benefit structures, benefit pools, shared care options for couples, and mandatory or optional inflation riders. Underwriting can be stringent, so timing of purchase is important; waiting too long can lead to declines or unaffordable premiums. Advisors also address the potential for rate increases on traditional policies and the premium guarantees often found in hybrid alternatives. They guide clients through application questions about health, family history, and functional status. When claims arise, advisors assist policyowners and families in understanding benefit triggers, filing paperwork, and coordinating with care providers. By integrating long term care insurance into retirement and estate planning, producers help clients manage a major financial and emotional risk that traditional health insurance and Medicare generally do not cover fully.