Short answer: Long-term care insurance helps pay for extended help with daily activities (such as nursing homes, assisted living, or home care) that medical insurance and Medicare generally do not cover. Some employers offer it as a voluntary benefit, but most people buy it individually.
Long-term care (LTC) insurance covers services that help with activities of daily living, such as bathing, dressing, eating, and mobility, when a person can no longer manage on their own due to aging, chronic illness, or disability. This includes care in a nursing home or assisted-living facility and home-based care. It is distinct from disability insurance, which replaces income.
This matters because standard health insurance and Original Medicare generally do not pay for ongoing custodial long-term care; Medicaid covers it only after a person has spent down assets to qualify. LTC insurance, or a hybrid life-and-LTC policy, is designed to fill that gap, though premiums rise with age and health.
Some employers offer group or voluntary LTC coverage, and a handful of states have begun creating public LTC programs funded by payroll contributions. Most coverage, however, is still purchased individually. Because eligibility and pricing depend heavily on age and health, people often consider it in their 50s or early 60s.