Which policy is specifically designed to cover extended residence in a nursing home?

Long-term care policies are specifically designed to cover the costs associated with extended residence in a nursing home or other long-term care facilities. These policies provide financial support for various services that individuals may need when they can no longer perform everyday activities independently, such as bathing, dressing, or eating.

The focus of long-term care insurance is on protecting the individual's assets by covering the potentially high costs of extended care services that are not typically covered by traditional health insurance or Medicare. This can include not only nursing homes but also assisted living facilities and home health care.

In contrast, short-term disability policies generally offer income replacement for a limited time due to temporary illness or injury, while life insurance policies provide a death benefit to beneficiaries upon the policyholder's death. Critical illness insurance provides a lump sum benefit upon diagnosis of specified serious illnesses but does not address the long-term care needs. Therefore, the most suitable option for someone seeking coverage specifically for extended stay in a nursing home is long-term care policies.