Insurance & Employee Benefits
What features of long-
There are various questions and issues to keep in mind when choosing a long-
Where may care occur?
The best policies pay for care in a nursing home, assisted living facility, or at home. Benefits are typically expressed in daily amounts, with a lifetime maximum. Some policies pay half as much per day for at-
Under what conditions will the policy begin paying benefits?
The policy should state the various conditions that must be met.
What events must occur before the policy begins paying benefits?
How long will benefits last?
A benefit period may range from two years to lifetime. You can keep premiums down by electing coverage for three to four years—longer than the average nursing home stay—instead of lifetime.
Indemnity vs. Reimbursement
Inflation protection is an important feature, especially if you are under 65, when you buy benefits that you may not use for 20 years or more. A good inflation provision compounds benefits at 5 percent a year. Without inflation protection, even 3 percent annual inflation will, over 24 years, reduce the purchasing power of a $150 daily benefit to the equivalent of $75.
Six other important policy provisions
Source: Insurance Information Institute
Long Term Care Insurance Features
Key LTC Insurance Words
Waiver of Premium
Restoration of Benefits
Activities of Daily Living
Assisted Living Facility