Long Term Care Insurance Benefit Period and Amount

Most modern long term care insurance policies are packed with three features—benefit period, elimination period, and benefit amount protection— that can be customized accordingly. There are number companies offering long term care insurance, so expect some differences on those policies as well as the rules and regulations. Nevertheless, the three main features remain the same from one insurance company to another.

Benefit Amount
After the elimination period, the policyholder will be receiving the benefit amount or the sum of money that pays out for the person’s care once the person has completed the elimination period. The amount can be either daily or monthly. The national average daily cost for nursing homes and assisted living facility is a whopping $200 and up per day, the cost is even higher across the major cities and states such Texas, California, and Washington. Determining the right amount for the benefit period can be quite confusing because most policyholders are not updated on the current prices of nursing homes and/or assisted living facilities, so chances are they end up on benefit period that is either higher or lower than the cost of care. The benefit amount should complement the monthly expenses for actual care. The policyholder should choose the benefit amount carefully to avoid costly mistakes. Don’t rush in deciding for the cost of benefit amount, otherwise, you must research first on the current nursing home costs that might affect the premiums, or seek advice from financial or LTC insurance expert. Keep in mind that high benefit amount results to higher LTCi premiums 

Benefit Period

The last and one of the most important features is the benefit period. The benefit period is the length of time or how long the person will receive the benefits. Nationally, the average nursing home stay is within two to three years. Many LTCi financial experts also suggest getting benefit period not longer than 2 to 3 years. 
Most LTC companies offer policies that cover two years, provided with extension option up to five or lifetime coverage. Obviously, the policies with longer benefit period are more expensive compared to shorter benefit periods. However, nobody can dictate how long the benefit period should be because every person has different situation and needs. 

The three features should always complement your needs and your financial status. Most insurance companies nowadays offer flexibility for the consumers to design their own policies that will tailor their personal needs. Choosing the best LTCi policy can be complicated if you have little background or experience on it, so it would be better to ask help from experts rather than take up the gauntlet 
Elimination Period

The elimination period is the number of days or the length of time the policyholder will shoulder his or her own care before the insurance company barges in. There are various preferences on the number of days for the elimination period that a policyholder can choose from. These can range from 0 days, 30 days, 60 days, 90 days, 180 days, and 365 days. One simple rule applies: the longer the elimination period a person chooses will equate to much lower LTCi premiums.  However, the person should decide wisely on how long the elimination period will be, considering his or her current and future financial resources.