Long-term care insurance is meant to cover some or all of the expenses involved with being placed in a nursing home. Some long-term care insurance policies cover stays in assisted living facilities and home health care as well. Since these costs tend to be expensive, and Medicare does not cover them, many elderly people are attracted to long-term care insurance. However, it is not the right solution for everyone. It is usually expensive, and it may not cover all or most of the care that an elderly person eventually needs. Only a small minority of elderly people have signed up for it, and a substantial percentage of policy holders never collect any benefits from it. You should carefully read the terms of any policy that you are considering so that you understand its precise scope.