Retirement could be the most intricate stage in our lives. Albeit the physical and mental frailty, the accompanying cost for long term care can seriously push individuals to impoverishment. The prices of nursing homes and other institutional care are extremely high that many middle-income earners cannot avail and endure. Purchasing long term care insurance is always recommended in retirement planning because it protects a person’s finances as well as dignity. However, in choosing long term care insurance policies, you should look at the important features or provisions to ensure a considerable coverage.

Elimination Period – Many people refer to this as the "waiting period." This is the period you are required to pay long term care costs on your own before the policy dishes out. To make it clear, you will have to pay everything for your care during the elimination period. It would be better to assess your needs and your health condition in choosing the appropriate elimination period.

Benefit Period – Would a lifetime coverage be rewarding? The benefit period affects the cost of your premiums and your health coverage as well. The national average nursing home stay is three to five years, so it makes sense to get a benefit period that pays the same. You may also use Medicaid as supplement to your private insurance if you wish to take five or more years of coverage.

Benefit Amount – Most LTC policies provide two options for the daily benefits, either daily or lifetime coverage. Your daily benefit should be at par with the costs of long term care services in your area, so you won’t get exorbitant priced premiums. Some financial experts suggest insuring at least half of the daily LTC services and then the rest will be paid out-of-pocket.

Inflation Protection – This is by far the most important rider in any LTC policy. Everyone should expect a rise in the prices of premiums as time goes by. The inflation protection benefit resolves this problem. Getting either simple or compound inflation protection may significantly protect you from paying high increments over time. A compound inflation rider automatically increases the benefit amount (depending on the percentage you purchased) each year, without affecting your premiums. Upgrading your policy with this rider will eventually make your premiums more expensive, but it pays off, though, because LTC services are far overwhelming. It would be better to take advantage of partnership policies in the state where you’re in. These partnership policies include inflation protection and allow consumers to protect their assets from Medicaid.

Indemnity Policy – Indemnity policy is way better than the reimbursement policy because it pays the full daily benefits regardless of the actual charges incurred. For example, if you have a daily benefit amount of $200 and your bill is $160, you will get the full $200 as your benefit and keep the excess $40.