ADLs are bathing, dressing, continence, toileting, eating, and transferring. Most policies begin paying benefits when two out of six of these ADLs cannot be performed without assistance for more than 90 days as certified by a licensed health care practitioner. Benefits can also be triggered by a cognitive impairment such as Alzheimer's. The premiums for these policies are not tax deductible and Congress has been unclear as to whether benefits can be received tax free, so there is a chance you would pay taxes on benefits received under one of these policies. It is important that your policy cover care in the settings that you want - nursing home, assisted living facility, adult day care center, and in your home.
Benefit periods can be two years, three years, four years, five years, six years, and unlimited.
Obviously, the longer the benefit period, the higher the premium, but it is advisable to buy the longest benefit period you can comfortably afford. The elimination period is essentially your deductible for a long term care policy. Typically, you would choose an elimination period between 0 - 180 days. The shorter the elimination period the higher the premium, but keep in mind how much you can afford to pay for long term care expenses out of your own pocket before your benefits kick in. Five percent compounding or simple inflation protection is usually recommended.