My mother had one of these policies which provided an at home care provider. She had been paying into the policy for a long period of time. When she was diagnosed with terminal cancer and needed to use it they threw up every roadblock you can imagine to provide the care they promised. They knew she was terminal so they dragged out the process by saying paperwork was lost, never received, incorrect etc. Phone calls would never be returned, the necessary people to contact were out of the office - this went on for months.
I little bit of research showed that many others were experiencing the same thing in this industry. Fortunately my mother and sister had careers in state government and started writing letters with full documentation to the appropriate state agencies and then like magic the permission and payments for the in home care were received.
My mother was given six months to live when she received her cancer diagnosis, she managed to survive for a full year. All her care was in home although the policy would also have covered nursing home or hospice care. But it was pretty evident from the initial response that the company was trying to run out the clock on her life so as not to pay out anything. You need to do some serious research into any company offering this type of policy.