How Does Long Term Care Insurance Work? How does long term care insurance work? This is a question I hear almost every day. Many people still do not understand how LTCi works. Due to the heightened awareness of Long Term Care Insurance over the past several years, most people realize that this coverage is an important part of their financial planning.When you purchase LTC you are simply purchasing a pool of money to be used at a later...... Similar Editorial : Long Term Energy Outook by Jeremy Smith. | Source : Rhode Island Auto Insurance