As America’s health care continues to improve, life expectancy is prolonged. But increased longevity does come at a price. Most all of us will need assistance with simple daily tasks like bathing, dressing, and housekeeping. But serious ailments that require professional help are expensive.

Long-term care policies are becoming increasingly attractive ways to manage the unforeseen expenses of our elder years. The younger you are when you buy, the less you pay. But do consider paying extra for the “inflation factor.” Although it may eventually double your policy’s annual cost, it will boost your benefits as well.

Activities of daily living, or ADLs, determine an individual’s ability to care for themselves. Benefits only begin after you meet the policy’s defined requirements for ADL assistance. However, most policies do not start paying until the end of an elimination period, which can be a set number of days on the calendar or the number of days you’ve actually been receiving care. (So if your home health aid visits once a week, benefits would kick in after 30 days or 30 weeks, depending on the policy.)

How you receive your money also varies. Let’s say your daily benefit is $300. With a reimbursement policy, the insurer pays you or your service providers. If they charged $250, the insurer uses the extra $50 to extend the life of your benefits. With an indemnity policy, you get $300 for each day you have a receipt for services, no matter the cost. Finally, a cash policy pays $300 per day, no receipts required.

Very few people actually need lifetime benefits – the average stay in a nursing home is only 2.5 years. And if the policy seems too good to be true, get a second opinion from a certified financial planner or an elder-law attorney.