Long-term care insurance is a critical component of financial planning for many individuals, providing coverage for services not typically covered by regular health insurance. Long-term care encompasses assistance with daily activities like bathing, dressing, and mobility, and is often needed as people age. With the Department of Health and Human Services reporting that 70% of those aged 65 and above will require long-term care services, the importance of such coverage cannot be overstated.

The costs associated with long-term care can be substantial, with the median cost of care in a semi-private nursing home room exceeding $93,000 per year according to a Genworth study. Long-term care insurance offers a solution to mitigate these expenses, protecting retirement assets and providing individuals with more choices and freedom regarding their care options. By enrolling in a long-term care policy, individuals can secure financial support to cover the costs of care in various settings, including their own homes, nursing homes, or assisted living facilities. It's important to apply for coverage before serious health concerns arise, as policies typically require health evaluations during the application process. Once approved, policyholders begin paying premiums and can access benefits when they are unable to perform certain daily activities or are diagnosed with cognitive impairments.