How to Determine the Right Long Term Care Insurance Benefit Period and Amount
How to Determine the Right Long Term Care Insurance Benefit Period and Amount
Most insurance for long term care features are flexible to meet the consumers' demand and budget. Two of the important features that can be customized are the benefit period and amount to help policyholders manage their resources and prepare for the costs of the premiums.
Long Term Care Insurance Benefit Period
The "benefit period" simply means the period of time the benefits will pay for your coverage. Most policies offered throughout United States have the average period between two and three years, but they can be extended up to five or more years, depending on the person's needs. You may select the benefit period anywhere from two or even lifetime coverage. Seniors with cognitive disorders such as Alzheimer's or dementia may need five or more years of benefit period than those with just simple disability. Nevertheless, longer benefit period will eventually make premiums more exorbitant compared to shorter benefit period. Keep in mind that when you don't consume your entire monthly benefits, your benefits will stay in the pool and last longer than your expected benefit period.
Insurance companies define the maximum benefit period in two ways. First, the policy may issue one-time maximum benefits that is usually stipulated in years, for example, a five-year policy will pay the coverage for long term care coverage for five years. Next, some companies refer to maximum benefit period as the "period of disability." This means, for instance, a five-year maximum benefit period would pay LTC services during the period of disability. Some companies convert the benefit period into maximum dollar amounts and do not cut the number of days the policy would pay for coverage the overall dollar amount will be the basis on how long the coverage lasts. Moreover, there are fewer companies nowadays that offer lifetime coverage, but others offer up to $1 million consumable benefit amount.
Although the recent statistics says 91% of policyholders will need five-year benefit plan, there's no definite or perfect period. It all depends on your health, situation, and financial resources. It's advisable to consult a long term care insurance specialist to help assess your condition and determine the right benefit period for you.
Benefit Amount
The benefit amount is the amount of money you will receive in your policy; this is usually stipulated daily or monthly. Policyholders can freely choose the amount from minimum of $50 to $500 a day. The national average of benefit amount is $200 per day, but can be higher in Northeastern region.
Keep in mind that the benefit amount may vary on the state you're living in. For example, in Florida, the average care costs around $190 per day, while if you're in New York, the average is $380 a day. Many of today's policies pay for monthly benefits instead of daily. Monthly benefits are more flexible than daily because you can budget the cash benefits accordingly.
When choosing the benefit amount, it is a rule of thumb to know the costs of care in your area, particularly nursing home care and assisted living. Remember the benefit amount influences your premiums, which means higher benefit amount will result to more expensive premiums. Four Important Features of Long Term Care Insurance Life Insurance over 50- is it worth giving a chance? How to Save Over $500 a Year On Your Family Life Insurance Policies - A Micro Finance Focus Lifestyle Insurance coverage Agents Community Action Agencies and the Importance of Care Providers Insurance Stat Life insurance Bring In More Sales With Life Insurance Leads Set Some Goals! YOU Can DO Anything That You Want With Today, And With The Rest Of YOUR Life! Have An Effective Security System At Your Home For A Happy And A Secure Life Life Insurance Expiry – when managing premiums is difficult Consolidation observed in life insurance Longboards and Longboarding Fulfill Your Life With Excitement and Thrill How to buy life insurance online?