How to Compare Long-Term Care Policies

Long-term care health insurance covers types of health care that traditional health insurance and Medicare do not cover, including nursing home care, home health care, and assisted living. The policies can be confusing, and it's important to make sure you're getting the kind of care you need.

Compare What Is Covered

• The best long-term care insurance policies cover a wide variety of care options, including assisted living, home health care, nursing home care, and adult day care. Avoid any policy that only covers home health care or care in a facility, and not both.

Compare Payment of Benefits

• Benefits are based on the number of daily living activities you need assistance with; make sure your policy requires as few as possible. Benefits are calculated on a daily basis, so make sure the policies you are considering will pay benefits at a rate that will cover your daily health care expenses. Some policies have a cap on amount of benefits or number of years those benefits will be paid; look for the highest amount and longest period available.

Compare Premiums

• Premiums can change with long-term care policies, sometimes drastically. Check policies to see if they provide inflation protection.