Life & Health Insurance Practice Exam 2025 - Free Practice Questions and Study Guide

Individual long-term care (LTC) policies are the most common type available in the private market. These policies are designed to help cover the costs associated with long-term care services, which can include assistance with daily activities such as bathing, dressing, and meal preparation. Individual policies generally allow for more customization according to a person's specific needs, preferences, and budget, making them a popular choice for many consumers.

Group LTC policies, while also available, tend to be offered through employers or associations, which may limit the options for customization and may not be as widely sought after as individual plans. Short-term care insurance and critical illness insurance serve different purposes; short-term care focuses on covering brief periods of care often following hospitalization, while critical illness insurance provides a lump sum payment upon diagnosis of certain serious conditions, neither of which directly pertains to the long-term care needs most individuals anticipate as they age. This specificity of coverage in individual LTC policies contributes significantly to their prevalence in the private insurance market.