Long-term care insurance policies provide a daily allowance to policyholders for services, including skilled nursing care, occupational, speech, physical and rehabilitation therapy, and personal care such as dressing and bathing, states LongTermCare.gov. These services are available in the home, and in assisted living facilities, nursing homes, hospice care and Alzheimer's special care facilities.
Services covered vary from one insurance company to another, states AARP. Policies may cover adult day care services, which is a supervised setting outside of the home that provides help during the day. Policies may also cover necessary home modifications, such as the installation of ramps or grab bars, and care coordination, in which a trained or licensed professional helps locate services and care needed by the policyholder.
A long-term insurance policy may cover just room-and-board at a nursing home facility, or it may also cover rehabilitation, daily activities, and personal and skilled health care at a nursing home facility, explains AARP. A policy may require the policyholder to receive care from a licensed professional or certified home care agency, or it may grant the policyholder the ability to hire independent providers or family members. At the home, a policy provides allowance for an agency or individual to provide services such as chores and housework for the policyholder.
Long-term care policies may pay a set amount for different services, or they may pay varying amounts, states AARP.