What type of insurance covers services for individuals who need assistance with daily living activities?

Long-term care insurance is specifically designed to cover services for individuals who need assistance with activities of daily living (ADLs), such as bathing, dressing, eating, and mobility. This type of insurance is essential for individuals who may suffer from chronic illnesses, disabilities, or cognitive impairments that limit their ability to perform these essential tasks.

Long-term care insurance typically pays for a range of services such as home health care, assisted living facilities, and nursing home care, providing financial support for a variety of caregiving needs. The policies are structured to help alleviate the financial burden that can arise from needing extensive care over an extended period, often not covered by standard health insurance or Medicare.

Other types of insurance options listed do not provide this specific support in the context of daily living activities. Short-term disability insurance primarily replaces lost income due to temporary disability but does not cover caregiving services. Health maintenance organization (HMO) insurance focuses on providing health care services through a network and typically covers medical treatment rather than long-term care services. Critical illness insurance provides a lump-sum payment upon diagnosis of severe illnesses but does not specifically address daily living assistance needs. Therefore, long-term care insurance stands out as the appropriate type of coverage for those requiring assistance with daily living