NEW YORK - When her first husband entered a nursing home 19 years ago, the costs nearly crippled Claire Harmon.

Her former spouse, Myron Angel, lingered for three years before dying at age 71.

Ms. Harmon, now 75 and remarried, wanted much better protection from the devastating costs that can come during the last years of life.

She and her second husband, Albert Harmon, 81, bought long-term care insurance.

The policies, which they've had for seven years, aren't cheap - nearly $6,000 a year - but Ms. Harmon has no regrets.

In January, Mr. Harmon entered a nursing facility near the Harmons' apartment. A retired...