Those plans have some restrictions, Stallings cautioned. For example, a qualified plan can't duplicate a payment for any portion of care paid by Medicare, she said. Those may not offer the same tax benefits. A person can choose the length of time benefits can be paid, from a year up to lifetime coverage. The longer the length of benefits, the higher the premium.
Premiums also vary depending on the amount of time elapsed before benefits kick in.
For example, a buyer may choose a policy that doesn't cover the first 90 days of a nursing home stay, or, for a higher price, opt for first-day coverage. A long-term care policy should have guaranteed renewability, that is, it can't be canceled as long as you pay the premiums. A long-term care policy can offer other kinds of related coverage, sometimes as part of the policy and sometimes as riders. Stallings noted some, like home care and assisted living coverage, are worth having, but a buyer should choose carefully. Of course, much of the premium depends on the age at which you buy a policy.