Customize your Long Term Care insurance policy:

  • Determine what care setting will be most appropriate. For instance, as much as most of us would want to stay in our homes, home care may not be appropriate unless family members or close friends are ready, willing and able to oversee caregiving in the home.

  • Fix a daily benefit amount. If you know you will have income or enough of a nestegg to depend upon, consider a co-pay arrangement to lessen your premium expense.

  • Fix your deductible Elimination Period to match your "emergency" nest egg. At $130 per day, a $12,000 nest egg could carry you for 3 months at today's prices. Most folks elect the 90 or 100 day Elimination Period to reduce premium expense. Make sure you keep that emergency nest egg funded, though!

  • Unless you get an Unlimited Lifetime Benefit policy (and those are getting rare) make sure you understand the correlation between a pool of money; your daily or monthly benefit amount and the amount of time you want your benefits to last.

  • Seriously consider 5% Compound Inflation Protection, especially if you are under 75 years of age. It will substantially increase your premium, but considering today's 6% yearly inflation in the care sector, it is worth the additional expense in the long run.

  • With long term care insurance, one plan does not fit all cases. Develop your coverage wisely with the counsel of a professional long term care insurance specialist who can make sure your get what you need without over-insuring.