Long-Term Care Insurance: Is It Right for You (and Your Parents)?

While skepticism about "new and improved" insurance policies is healthy, enhancements of long-term-care policies may be worth considering. Why? Every several years, Congress tightens eligibility requirements for Medicaid coverage of nursing-home costs.

Here are examples of innovative features in long-term-care policies:

• Combination policies. Money that is not used for long-term care is paid out in the form of annuity distributions.
• Shared care. Couples can tap into each other's policies in case one exhausts benefits.
• Flexible payout. This generally means that policyholders can change how they're reimbursed from month to month, so they can better meet their long-term-care costs.