The benefit amount should be adequate. Most policies pay a specified amount per day, so you will have to pay the difference.

 Benefits should increase with inflation. You may not receive benefits for many years, so it's important to make sure that your benefit amount increases with inflation.

 Covered services should include skilled care, intermediate care, custodial care, home health care, and adult day care.

 There should not be a requirement that you must first be hospitalized to receive benefits. There should also be no requirement that you must first receive skilled nursing home care to receive intermediate or custodial care, or that you must first receive nursing home care to receive home care.

 Benefits should be payable when you can't perform two or three activities of daily living such as bathing, dressing, eating, walking, transferring from a bed to a chair, using the bathroom, or remaining continent. Another condition that should qualify is cognitive impairment.

 Specific coverage should exist for Alzheimer's disease and other organic-based mental illness.

 The policy should be guaranteed renewable, meaning the policy can't be canceled due to age or deterioration in health.

 Select a reasonable waiting period and a benefit period you are comfortable with. The longer you wait before benefits begin, the lower your premiums.

 Determine if the policy is "qualified," which means it meets certain IRS conditions. With a qualified policy, you can deduct a certain percentage of the premium as a medical expense on your tax return. The exact amount depends on your age. Medical expenses are deductible to the extent that they exceed 7.5 percent of your adjusted gross income. Another benefit: Payouts from qualified policies are federal income tax free.