Coverage depends on the plan you choose. Some policies cover only nursing home care, but many policies now include coverage for in-home care, including nursing care, physical therapy, and medical equipment. Many policies also cover assisted living, which is likely to be important, since this type of care is rapidly expanding.

Policies may also include adult daycare and respite care to give a break to a caregiver who is a family member. Almost all policies cover care related to Alzheimer's or other forms of dementia (though there are exceptions, and since this is a common condition, you'll need to be careful that the policy you choose does in fact cover Alzheimer's). In general, the more types of care that are covered, the higher the premiums.

Most policies include a deductible or waiting period before the coverage begins, especially if the policy holder has any pre-existing conditions noted during the underwriting process. Most policies don't include coverage related to alcohol or drug abuse. Also, no benefits at all are paid unless the insured person qualifies for coverage under the specific terms set by the policy.