Long term care insurance - A health-insurance variation designed to cover the costs of long term care at home or in a nursing home. These policies may offer a specified nursing home benefit and home-care benefit. Some policies also account for inflation at additional cost. The popularity of long term care insurance has grown as federal laws have changed, making it less likely that Medicaid will pick up the tab for long term care. These policies are usually rather expensive, and grow even more costly as the policyholder ages. .