NEW YORK (MarketWatch) -- Long-term-care insurance policies aren't simple. Unless you have a history of debilitating disease in your family, you have little idea whether you'll ever need such care and, if you do, what type of care it will be, how long you'll need it or what it will cost a decade or two hence.

Most people require long-term care after age 65, when they are covered by Medicare, says Eric Hutchinson, a chartered life underwriter with Hutchinson Financial in Little Rock, Ark. The thing is, he says, Medicare pays for a short period of care, followed by out-of-pocket payments and when you run out of money, Medicaid picks up the tab.
 
The very, very poor and the very, very rich don't really need long-term-care coverage, says Hutchinson. Those in the middle do, and before the age of 70, when policies become prohibitively expensive.

Here are a few ways to bring the price down while keeping your peace of mind:
Shared coverage. You share the benefit period with a spouse so that if one of you gets sick and the other does not, you can pool the benefits for one person's care. Policies cost 10% more than if you were to buy separate coverage, according to Kiplinger's Personal Finance, but you're playing the odds. Some policies cover both spouses with an additional pool of shared coverage.

Reduced benefits. Lifetime coverage sounds great but it comes at a hefty price. Most people do not require care beyond three years, so consider shortening the benefits period to five or six, especially so if you're pooling coverage with a spouse.

Longer wait. By extending the waiting period for coverage to kick in -- essentially upping your deductible -- you'll pay less each year but don't go overboard. Paying for a whole year, or even a half year, out-of-pocket at a nursing home could sink your finances and the annual savings on your premiums won't make up for it. Kiplinger's recommends a 60- or 90-day waiting period.

Inflation protection. Maybe more important than anything else is making sure your daily benefit has the same purchasing power down the road. A policy that automatically increases that figure by 5% a year compounded will go a long way toward keeping up with inflation and rising costs. Other plans that let you purchase additional benefits in the future may end up costing you a lot more.

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By Marshall Loeb, MarketWatch

Marshall Loeb, former editor of Fortune, Money, and The Columbia Journalism Review, writes "Your Dollars" exclusively for MarketWatch.

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