Several choices. Also known as the Elimination Period; it is like a deductible, but expressed as the amount of time that your expenses are out-of-pocket before benefits begin to kick in.  There are many variations, but most commonly chosen is 90 days. There is a new popular variation that waives this waiting period for home care, and only applies it to a facility.  It is especially popular because home care days that are covered right away are also counted towards satisfying the facility requirement. 

BENEFIT PERIOD 
This is usually the minimum time benefits will last.  If you don't use up the entire pot of money during this time, your benefits will continue on. (examples-2, 3, 4, 5, years, Unlimited Lifetime)

BENEFIT AMOUNT & PAID DAILY OR MONTHLY
Choose the benefit amount in dollars, either on a monthly or daily basis.  Similar examples would be $200 per day, or $6,000 per month.

 

Choose to have only your exact expenses reimbursed back to you, or a set amount of predetermined cash paid regardless of how much you spend for care.   See the web page for the "Rookies Guide" for an explanation on the reasons people may choose the indemnity option.

INFLATION PROTECTION
An option to allow you to keep up with inflation on Long-Term Care costs.  Common choices are: 5% Compound, 5% Simple, 3% Compound, and either Future or Guaranteed Purchase Option.  The last option allows you to catch up on inflation periodically, but it is not added on automatically.   However, those "catchups" are priced at your new age, which can become quite expensive.  The Inflation choice is usually influenced by age, with virtually all those under age 60 going with 5% compound.  For the under-age 60 group, attempts to lower premiums costs are usually best done by lowering the benefit amount or benefit period, instead of a lower grade of inflation.  Younger people can fall too far behind rising care costs over the long haul if the inflation option doesn't keep up. 

HOME HEALTH CARE 
Usually allows for choice of how much the insurance pays for Home Health Care services in relation to Facilty Benefit chosen.  Example is 75% of Facility Benefit, so a $200 per day facility benefit would only pay $150 for home care.  Most people are simply keeping the home care figure the same as the facility benefit.  There is a new trend to offer even more for home care than the nursing home amount, so people can afford to stay home longer.  For example, 150% home care would mean that if the plan has $200 per day for a facility, then it would cover $300 per day for home care.

GUARANTEED RENEWABLE
In virtually all policies.  Insurance cannot be canceled as long as premiums are paid, regardless of health.

COMPANY FINANCIAL STRENGTH
Very Important- Long Term Care costs are very high. The insurance company should have enough assets to cover the cost of claims. Look up company's rating and their underwriting criteria, to see if they take on a lot of risk.