Which type of policy provides coverage for both the policyholder's life as well as for potentially long-term care?

The correct answer is long-term care insurance, which specifically addresses the need for coverage that provides financial assistance for services such as nursing home care, home health care, and other types of long-term support. These services are essential for individuals who require assistance due to chronic illness, disabilities, or age-related conditions. Long-term care insurance is designed to cover these expenses that are not typically covered by standard health insurance or Medicare.

While term life insurance focuses solely on providing death benefits for a predetermined period, and universal life insurance combines life insurance with an investment savings element but does not provide long-term care coverage, neither option addresses the need for long-term care. Disability insurance offers benefits in the event that a policyholder becomes disabled and cannot work, but it also does not provide long-term care coverage. Therefore, the unique aspect of long-term care insurance is that it directly caters to the needs of individuals requiring ongoing assistance, distinguishing it from other types of policies.