Which of the following best describes long-term care insurance?

Long-term care insurance is specifically designed to cover the costs associated with long-term care services, which can include assistance with daily activities such as bathing, dressing, eating, and using the bathroom, as well as skilled nursing care provided in various settings like nursing homes or in-home care. This type of insurance helps individuals manage the financial burden of extended care, allowing them to maintain their quality of life as they age or recover from illness.

The other options do not accurately represent what long-term care insurance entails. Insurance that covers only hospital stays refers to health insurance or Medicare, which does not provide the specific coverage needed for long-term custodial or personal care. Unlimited lifetime benefits, while appealing, are not standard in long-term care policies and can vary significantly from one policy to another based on the terms and conditions. Lastly, insurance primarily for short-term rehabilitation stays doesn't align with the focus of long-term care insurance, which is intended for ongoing care needs that extend beyond short-term recovery periods.