Long-term care insurance provides a planned way of paying for some or all of the cost of any long-term care you may need now or in the future. Through a lump sum payment in advance, or regular premiums, you can buy insurance to cover the cost of care in your own home, known as domiciliary care or in a residential or nursing home.

The expression "long-term care" does not apply to care needed to recover from short illnesses, or convalescence following such illness. It refers to care that is needed for the foreseeable future, perhaps as a result of permanent conditions such as arthritis, stroke or dementia. Care needs caused by these long-term conditions are not always met by the NHS and are not supported indefinitely by private medical insurance policies.

The term "care" is used to cover a wide variety of care services, from someone to do domestic work in your home, through to respite care which offers a break for your carer, and a place in a residential or nursing home. Some policies will also meet the cost of installing gadgets and machines and other physical aids such as stair lifts, handles and grab bars to help mobility in the home, or the provision of medical services such as chiropody, physiotherapy and speech or occupational therapy. Most policies also offer a helpline service which gives you medical advice and general information about services in your area.