In order to help people protect against the high cost of long-term care either in a nursing home or at home, the insurance industry in the 1980s began to offer long-term care insurance. Since neither Medicare, Medicare supplemental insurance, nor private health insurance are intended to cover chronic conditions or long-term care, especially custodial care, LTCI policies were created to fill this gap. Federal legislation allows a portion of LTCI premiums to be tax deductible.In order to help people protect against the high cost of long-term care either in a nursing home or at home, the insurance industry in the 1980s began to offer long-term care insurance. Since neither Medicare, Medicare supplemental insurance, nor private health insurance are intended to cover chronic conditions or long-term care, especially custodial care, LTCI policies were created to fill this gap. Federal legislation allows a portion of LTCI premiums to be tax deductible.

This definition is in context to Employee Benefits. See more contextual defintions for Long-Term Care Insurance (LTCI).