What type of expense does a typical Long-Term Care policy cover?

A typical Long-Term Care policy is specifically designed to cover costs associated with chronic illnesses or disabilities that require long-term assistance, such as nursing home care, in-home health care, or other services needed when a person can no longer perform activities of daily living independently. This type of policy helps alleviate the financial burden that often accompanies the high costs of long-term care services, which are not typically covered by standard health insurance or Medicare.

In contrast, the other options pertain to different types of insurance that do not relate to long-term care. Homeowner insurance premiums generally cover risks associated with property damage and liability related to home ownership. Auto insurance claims deal with damages or injuries resulting from vehicle accidents. Travel insurance claims provide coverage for unexpected events during trips, such as trip cancellations or medical emergencies while traveling. Thus, the correct answer is focused on health-related financial support, making it distinct from the other types of insurance options listed.