All long term care insurance policies require you to select a “benefit period,” which is the maximum number of years that benefits are payable. Multiplying the number of years by the daily or monthly benefit will give you the total maximum benefit. As an example, a $6,000 per month benefit with a 5-year benefit period would have a total maximum starting benefit of $360,000. That amount can be increased with an inflation benefit to make sure that the coverage keeps pace with the rate of inflation for the future. Click here for an explanation on inflation benefits.
The most common benefit periods are 2, 3, 4, 5, 6, 8, and 10 years, or an unlimited benefit. The longer the benefit period, the higher the premiums will be.
When two people apply for a joint/shared policy, many companies offer a “shared care” benefit, which doubles the number of total benefit years. As an example, a husband and wife applying for a joint policy with a 3-year benefit period would have a total benefit “pool” of 6 years to split between them. If the husband needs 4 years of care, 2 years are left for the wife. If the husband needs 1 year of care, 5 years are left for the wife, etc.
Make sure to choose your benefit period carefully when structuring your policy since it cannot be changed after the policy is issued.
To get a quote and compare long term care insurance policies from the top LTC companies in the industry, please give us a call at 1-888-972-0024 or CLICK HERE to send us an e-mail 24 hours a day. We can help design a long term care policy to suit your personal needs and budget. Due to the complex nature of structuring long term care plans, there is currently no way for us to offer instant online quoting.