New rules make it hard to qualify for Medicaid. Premiums may be partially tax-deductible. Benefits are typically expressed in daily amounts, with a lifetime maximum. Most policies cover stroke, Alzheimer's and Parkinson's disease, but other forms of mental incapacity may be excluded. Medical necessity, or certification by a doctor that long-term care is necessary.
Some older polices require a hospital stay of at least three days before benefits can be paid.
This requirement is very restrictive and should be avoided. A benefit period that may range from two years to lifetime. Premiums will be lower if you pay for an initial period of care yourself instead of electing first-day coverage. Inflation protection is an important feature, especially if you are under 65 when you buy benefits that you may not use for 20 years or more. The best inflation provision compounds benefits at 5 percent a year.