Purchasers should buy the maximum length of benefits they can afford. Most policies will not provide the full amount of the actual charges for care and the policyholder will be responsible to pay the difference. Inflation Protection Benefits lose value over time due to inflation and the rising costs of health care. Consequently, without inflation protection, the value of the policy will decrease. The best protection is a built-in inflation guard of 5 percent compounded annually.
Some policies pay a percentage of the total cost of the services, adjusting to inflationary costs.
The waiting or elimination period is frequently referred to as a deductible. This is the period of time in which you must pay for services before the insurance company will pay. The longer you are willing to wait, the lower your premium. However, a long waiting period can be costly. Avoid a policy in which there is another elimination period if you have a repeat stay in a nursing home or require additional home health care.