Taking Care of Mom and Dad: Long-Term Care, Assisted Living and Nursing Homes Conclusion: A Long-Term Care Checklist

Following is a checklist of questions that your parents should consider and a reputable agent should be prepared to answer.

• Does the policy provide benefits for the following and, if so, how long will benefits be provided?
• skilled nursing care?
• intermediate care?
• custodial care?
• home health care?
• What is the daily benefit for each level of care?
• Does the policy have a maximum benefit amount expressed in dollars or time?
• What is the maximum benefit or coverage limit?
• Does the policy contain nonforfeiture provisions?
• Does the policy contain any optional policy benefits?
• How long is the elimination period?
• Does the policy require prior hospitalization? If so, how long?
• Does the policy base benefits on the ability to perform the activities of daily living? If so, what are those activities?
• Does the policy provide purely custodial care?
• Is there a waiver of premium provision?
• What are the policy's exclusions?
• Does the policy cover Alzheimer's disease?
• Does the policy cover preexisting conditions? If so, when

Your parents are entitled to know the answers to these questions. This, in turn, requires that the customer service representative, agent or broker be well educated in the various policy provisions and benefits. That education suggests -- though nothing guarantees -- that the coverage will be in place when your parents need it.

Essentially, LTC insurance covers the cost of your parents' time in a nursing home. In some places, the coverage is even called nursing home insurance. Since the pricing schedules of nursing homes are often designed to use up your parents' financial resources and then maintain them on government benefits, middle-class and wealthier parents may need the protection.