What type of policy would likely be used to provide benefits for chronic illnesses?

Long-term care insurance is specifically designed to provide coverage for individuals who require assistance with chronic illnesses or disabilities that limit their ability to perform daily activities. This type of policy is essential for helping cover the costs associated with long-term care services, which can include in-home care, assisted living, or nursing home care. Unlike traditional life insurance policies such as whole life or term life, which primarily offer death benefits, long-term care insurance focuses on providing financial support during a policyholder's lifetime when they need care due to chronic health issues.

This makes it particularly relevant for individuals who may face ongoing medical expenses linked to chronic conditions rather than a finite period of life coverage. Thus, long-term care insurance plays a crucial role in helping insured individuals manage potentially overwhelming healthcare costs as they age or if they develop chronic diseases.