Fact: Medicare doesn't pay for everything. Most likely you will still have to pay a portion of your medical costs - especially if you need long-term care. Thus, if you're thinking about buying insurance to pay your share of the bill, here are the questions to ask.

What is the rating of the company issuing the policy?

Each year, the A.M. Best Company grades insurance companies and gives them an overall rating based on their financial status. The ratings range from A+ (Superior) to C- (Fair). Make sure the rating of the company issuing the policy is at least an A (Excellent).

Does the policy cover current health problems?

Most insurance policies make you wait one to six months before they will cover you for a problem you already have. Others will cover you immediately, no matter what your condition. If you're in reasonably good health, the waiting period may not be a factor. But if you do have a medical problem now, you may need immediate coverage.

When does coverage begin?

If you're in perfect health today but get sick tomorrow, how long will you have to wait before your policy pays? The range is typically one month to one year. Obviously, you'll want a policy that begins paying sooner, but you may be able to save money if you agree to wait.

Are the policy's benefits fixed or are they adjusted for inflation?

A $50 a day benefit today will not buy you as much protection in ten years. While most policies do not offer inflation adjusted benefits, some give you the opportunity to buy extra coverage that will increase benefits each year. Naturally, you'll pay more for this extra but it may be worth it.

Is the policy renewable?

Make sure you get a policy that's renewable for life. Otherwise, the insurance company may be able to cancel the policy just when you need it the most.

What level of coverage does the policy provide?

Medical coverage can vary from the basic custodial care at home to skilled professional care at a special institution. Be sure to compare policies and prices. You don't want to pay for more than you need. And you want to be sure to receive what you pay for.

How does the policy define excess charges and what percentage does it pay?

Generally, excess charges mean the part of a medical bill that Medicare doesn't cover, the part you must pay. Few policies pay 100% of excess charges. Most policies limit excess charges to what they consider customary or reasonable. And then they pay a percentage of that fee.

Does the policy require a hospital stay beforehand?

Some policies will not pay benefits if you do not go to a hospital before entering a nursing home. Since it's entirely possible you will not need hospitalization beforehand, make sure your policy pays for benefits in either case.

Is Alzheimer's disease covered?

Some policies are very vague about this. Since most policies won't pay for mental and nervous disorders, you'll need to specifically ask how Alzheimer's is classified and whether or not it's covered.

What's the cost?

Too many people ask this question first. That's a mistake. Don't buy a policy simply because it's cheap. Such a policy won't be worth much if it doesn't provide the coverage you need. Instead, try to figure out what you'll need first and then shop around until you find an insurance policy that meet your needs and offers the best price.

Will premiums remain the same or will they increase as you get older?

Most policies offer level premiums which is most desirable. Be wary of a policy that does not.

Will the policy be canceled if a payment is late?

Most policies offer a grace period from one to four weeks if you should forget to make a payment. Don't assume that's the case, though. You're better off knowing the rule up front than finding out about it later - when it may be too late.

How will the policy affect present coverage?

You shouldn't have more than one policy to supplement Medicare. In fact, it's against the law for an insurance agent to knowingly sell you a policy that duplicates coverage you already have. Yet, some unscrupulous insurance agents will avoid that technicality by not asking. Therefore, protect yourself by asking the question. And if you have any doubts about the agent or about the policy, don't sign anything or hand over any money until you investigate further.

Emily S Hazlett is Vice-President:Investments at ENB Insurance Agency, Inc. a wholly owned subsidiary of Evans National Bank.