Long-term care insurance covers you when you need human or non-human assistance in eating, toileting, transferring from one place to another, dressing, bathing and continence (e.g., diaper changing), regardless of whether you need care in your own home, an assisted living facility, or nursing home. The cost of a policy is based on your overall health, the amount of coverage you apply for, the waiting period you choose and the number of years you want the policy to last once you start needing care.