Maybe their coverage isn't as good or they may be more likely to raise rates. When comparing policies, be sure to examine the amount of coverage paid per day, the length of the front-end deductible, which is the number of days that you have to pay for care on your own before coverage kicks in, and the length of the coverage. Be sure to check out a company's inflation protection policies. With inflation protection, an insurance company will add an extra 5 percent to your daily benefit, compounded annually. The downside is that signing on for inflation protection can bump up the cost of your policy by several hundred dollars or more.
Some companies nearly double the cost of premiums when inflation protection is added.
Older seniors may want to pass on this type of protection. There's bound to be additional expenses. It's not a cure-all. Having a long-term care policy won't help seniors who are healthy, but may need help with housework or cooking or going to the grocery store. And while baby boomers are looking out for ways to help their parents, they may want to consider how a long-term care policy would fit into their own retirement strategies.