What is a key benefit of long-term care insurance for policyholders?

Long-term care insurance is designed specifically to provide financial support for a range of services that assist individuals who are unable to perform daily activities on their own due to age, chronic illness, or disability. The key benefit of having this type of insurance is that it covers costs associated with various care services, which can include in-home care, assisted living facilities, nursing homes, and respite care. This coverage can alleviate the financial burden on individuals and their families when faced with the high costs of long-term care, ensuring that they receive the necessary support and services without exhausting personal savings or relying solely on family members.

The other options do not accurately reflect the primary purpose of long-term care insurance. For instance, while it may indirectly affect overall healthcare costs, it does not specifically reduce the costs of traditional health insurance. Long-term care insurance does not guarantee employment in the healthcare industry, as it is a financial product rather than a job opportunity. Additionally, it is not mandated by law as the only type of insurance; rather, various types of insurance serve different needs, and long-term care insurance is just one option among many.