Ask the Expert: Beware combined policies

What should I know before I buy a combination life insurance / long-term-care policy?

 This combined policy is sold by only a few companies, and its profitability is still unclear. Those are reasons to be cautious about buying it.

Indeed, long-term-care insurance in general inspires caution rather than confidence. That's why sales of stand-alone policies have languished.

Their complex language varies enormously from one insurer to another, making it difficult to comparison-shop and creating uncertainty about which claims will be paid. The coverage has a history of premium increases so steep that people have had to drop policies after years of payments.

nd people who maintain expensive policies may never need them. Insurers hope a combined life / long-term-care policy will prove more appealing: If you don't use the benefit to pay for long-term care during your lifetime, it goes to your survivors at your death. (One risk: You may get a bad deal on both life and long-term-care insurance.)

You may not file a long-term-care claim for decades. Only consider insurers with top credit ratings for financial strength and a serious commitment to long-term-care insurance -- in other words industry leaders. Don't be tempted by low prices; cheap policies are most vulnerable to premium hikes. Finally, don't buy a policy solely on the seller's recommendation.

Get a second opinion from an experienced elder law attorney or a fee-only financial planner who has practical knowledge of long-term care - who provides it, how they charge, etc. It's hard to evaluate policies without that knowledge. To find an attorney, go to the National Academy of Elder Lawyers at naela.com. Look for a fee-only financial planner with long-term care expertise at fpanet.org.

The bottom line You need to do lots of homework before buying long-term-care insurance.