What To Look For When Purchasing A Long Term Care Insurance Policy

It is desirable to get enough coverage to pay for costs in the area you'll want to live if and when the need arises. To learn the varied local costs of nursing home care, go to MetLife's Mature Market Institute and search the "Topics List" for "Nursing Home". As of 2010, the link is to: http://www.metlife.com/assets/cao/mmi/publications/studies/mmi-market-survey-nursing-home-assisted-living.pdf

Check in your area to determine whether assisted living facilities and home care are more expensive than nursing home care. Generally they are less expensive, but the cost can depend on the services required.

One way to determine the amount of coverage you need is to subtract your daily income on disability from the cost of a nursing home. For example, if your daily income will be $3,000 a month (or $100 a day) and a nursing home costs $300 a day, you need coverage in the amount of $200 a day to make up for the short fall.

At least one company has a policy which provides a pool of money instead of a daily or weekly benefit.

• The pool ranges from $100,000 to $1,000,000. 
• The policy costs up to 50% less than the company's standard Long Term Care Insurance policy. 
• The policy requires you to self-insure part of the cost by paying 20% of the daily cost of care until you exhaust the pool.

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