Long-term care insurance helps pay for extended custodial care, either in your home or in an assisted living or nursing facility if you suffer from a debilitating illness or disease, serious accident, or deteriorating cognitive condition such as Alzheimer's. Most health insurance and Medicare do not cover the costs of receiving long-term care that would provide assistance with the everyday basics, such as eating, dressing, and bathing. To qualify for this type of insurance, the insured typically must be unable to perform at least two or three essential daily activities for a specified period before coverage begins. The cost of receiving prolonged care can be high and unaffordable for most families. Long-term care insurance may not be appropriate for everyone, but it could significantly alleviate potential financial strain on your family.