Benefit

• The amount you pay for long-term care insurance will depend in part on how much the daily benefit will be when you use the coverage. Long-term care insurance helps you pay medical costs for a nursing home or assisted-living facility. If your daily benefit adjusts with inflation, you might pay more. In 2008, CNN Money Magazine's Justin Martin reported that the average premium was $1,000 per year.
  
  

Varies By State

• An important consideration for long-term care insurance is the high cost. That's why you should check the requirements of a policy in your state. For example, the state of Virginia requires minimum coverages for policies in its state. Some of the requirements aimed at protecting consumers are: coverage of pre-existing conditions after six months, guaranteed renewable (cannot be canceled), portability for all group contracts, offering of inflation coverage and minimum of 12 months of benefits.
  
  

Industry Information

• Consumers can find the latest studies of the industry on the website of the American Association for Long-Term Care Insurance (AALCI), which includes insurance brokers representing one company and independent brokers selling for multiple insurers, and can compare the cost of premiums. An study in 2008 showed the percentage of applicants qualifying for a good health discount by age. Of applicants 30 to 39, 66.3 percent qualified. Of applicants aged 60 to 69 percent, 42.2 percent qualified. Like life insurance, your age and health affects how much you will pay. Look for other resources here to save when shopping for a policy.
  
  

Asset Protection

• If you can afford the premiums, it is important to look for coverage to protect your assets. Consider the patients who need long-term care for a period of time, but after finishing care, go on to live independently and continue their retirement. You don't want to have to empty out savings to cover long-term care bills. Compare how much you would pay for long-term care premiums (monthly) with how much you would earn by investing those premiums. Decide which one will give you more money when you need it so you don't deplete the savings intended for your survivors.
  
  

Federal Tax Deduction

• Payments for a qualified long-term care insurance policy may be an itemized deduction you can make on your federal income tax return, according to the Internal Revenue Service (IRS). For more information, read IRS Publication 502 Medical and Dental Expenses.