Long-term care insurance provides financial aid for covered individuals who need medical, personal, custodial, and social services during long illnesses and disabilities. It protects against having to pay the potentially huge costs of such care. As an employee benefit, long-term care insurance is in its infancy. Most employer-sponsored coverage is fully paid for by employee contributions. While there are numerous design features and options that may be included in a long-term insurance plan, specific requirements must be met for contributions and benefits to qualify for tax exemption.