Activities of daily living

The inability to perform a certain number of "activities of daily living," or ADL, is the most common way insurance companies decide when you're eligible for long term care benefits. Typically, a policy pays benefits when you can't do either two or three of them. The most commonly used ADL are:

1. Bathing

2. Continence

3. Dressing

4. Eating

5. Toileting (moving on and off the toilet)

6. Transferring (getting in and out of bed)

Note: Research has shown that bathing usually is the first ADL a person can't do, according to the National Association of Insurance Commissioners (NAIC). Qualifying for benefits under a policy that only uses five ADLs may be hard if bathing isn't one of the five.

Source: The National Association of Insurance Commissioners

Should you buy long-term care insurance?

You should not buy long term care insurance if:

  You can't afford the premiums.

  You have limited assets.

  Your only source of income is a Social Security benefit or Supplemental Security Income (SSI).

  You often have trouble paying for basic needs, such as food, medicine, housing, or utilities.

You should consider buying long term care insurance if:

  You have significant assets and income.

  You want to protect some of your assets and income.

  You want to pay for your own care.

  You want to stay independent of the support of others.

Source: The National Association of Insurance Commissioners