Before deciding on LTC coverage, however, consumers should be sure they understand the options available to them and the background of the issuing company. The six basic choices clients must make in evaluating their need long-term care coverage are:

1. Do nothing and face an uncertain future.
2. Gift assets to children and become bankrupt, and rely on Medicaid if and when professional care is needed.
3. Protect certain assets such as farmland, equipment, business assets and some assets using a family limited partnership.
4. Buy long-term care insurance and pay premiums.
5. Buy a savings annuity with a long-term care rider with no premium payments; heirs get the annuity if the client dies and savings grow at interest.
6. Complete an asset protection plan before making a decision.

Typically, the recommended first step is to create an asset protection strategy by reviewing the various choices and options. Consumers should also check local nursing home rates to determine the cost of care in the area, and decide how much of that cost they can pay for out-of-pocket. Not all anticipated costs have to be covered if people can pay part of them from their income or assets. Employers and affinity-groups (such as credit unions) marketing benefits to members are offering long-term care plans, which may offer cost savings. Also, advisers should be sure benefits are protected against inflation so they are adequate to meet the client's future needs. Only then can advisers be sure the plan will protect the client's home, savings and heirs.

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