Select policies that clearly define the criteria to qualify for benefits, especially your ability to perform daily living activities. A policy should cover all levels of care that the doctor orders in any state-licensed facility. Some policies cover adult day care, nursing homes, assisted living and home health care. The more services provided, the more expensive the premiums will be. Some policies include a care manager who works with the family and doctor to determine how to provide the care needed.
Inflation protection is costly but desirable.
The younger you are when you purchase a policy, the more important inflation protection is. A policy should provide for third-party notification so the policy can't lapse if you forget to pay a premium because of dementia. Legally, all long-term care policies are guaranteed renewable, so the company cannot drop you if you develop a serious health problem. The insuring company should be financially stable it should have billions, not millions, in assets. While more than 125 companies sell policies, most are sold by about 12 companies.