long-term care policy
DEFINITION: A long-term care insurance policy is an insurance policy that covers specified services for a specified period of time. Long-term care policies (and their prices) vary significantly. Covered services often include nursing care, home health care services, and custodial care.
It’s important to note that Medicare does not cover most long-term care services. Medicaid does, for people who qualify based on income. But for people with higher incomes or assets, a private long-term care policy is needed in addition to Medicare.