What kind of insurance provides financial assistance for long-term care services?

Long-term care insurance is specifically designed to provide financial assistance for services related to long-term care needs. This type of insurance covers a variety of services that individuals may require as they age or face chronic health issues, including assistance with daily activities such as bathing, dressing, and eating, as well as care received in a nursing facility, assisted living, or at home.

The primary purpose of long-term care insurance is to help policyholders avoid depleting their savings and to provide peace of mind by ensuring access to necessary care when they cannot care for themselves. It is a crucial financial planning tool for many individuals, helping them manage potential medical expenses related to aging or chronic illness.

In contrast, life insurance primarily provides a death benefit to beneficiaries upon the insured's death, while critical illness insurance offers financial support upon diagnosis of specific serious health conditions. Accidental death insurance pays a benefit only in the event of death due to an accident. Thus, while these other types of insurance serve important purposes, they do not specifically address the need for long-term care services like long-term care insurance does.