Long term care insurance can be worthwhile to protect against high nursing home costs. The insurance itself can be expensive. Premiums have risen dramatically in recent years with several companies pulling out of the market.
For an individual, the key policy factors to consider are:
1. Daily benefit. $250/day should cover most costs.
2. Length of care. 3 years is the average stay.
3. Protection against inflation. 5% increase is the most common policy provision, but also the most expensive.
A policy provision that should be included is one paying for alternative care such as an in-home assistant.