Long term care insurance (LTC or LTCI), is an insurance product sold in the United States of America and United Kingdom, which helps provide for the cost of long-term care ahead of a fixed period. Long-term care insurance covers care generally is not covered by health insurance, Medicare, or Medicaid.
Individuals who want a long term care are generally not sick in the common sense, but as an alternative, are unable to carry out the basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.
Age is not a decisive factor in needing long-term care. About 60 percent of individuals over the age of 65 will have need of at least some type of long term care services during their lifetime. About 40% of those receiving long term care today are between 18 and 64 years of age. Once a change of health occurs long term care insurance may not be available. Early onset (before age 65) Alzheimer's and Parkinson's disease are rare but do occur.
In the United States, Medicaid generally does not cover long term care provided in a home setting or for assisted living. However, Medicaid does provide medically necessary services for people with low income or limited resources who "need nursing home care but can stay at home with special community care services." People who need long-term care traditionally prefer care in the home or in a private room in an assisted living facility.