When you are shopping for Long
Term Care insurance you will find that there are a lot of policies
and
features to choose
from. Most
policies include the same standard features.
Policies
Coverage for the following types of care is provided in most
comprehensive Long Term Care insurance policies:
- Nursing Home
Facilities
- Assisted Living Facilities
- Home Health Care
- Adult Day Care
Most Long Term Care insurance policies are reimbursement contracts
where benefits are paid only for expenses that are incurred,
up to a predetermined benefit amount. Indemnity contracts
pay the entire
predetermined benefit on a daily or monthly basis.
Daily Benefit
The daily benefit you select is the maximum dollar amount that
the insurance company must pay for your care on a given day.
Some policies
pay this benefit out as a weekly or monthly benefit, which allows
you to receive benefits for expenses greater than your daily
benefit.
The daily benefit ranges from $50 to $500 per day depending
on the insurance company.
Home Care and Adult Day Care Benefits
This benefit covers costs provided by skilled professionals like
registered nurses and licensed therapists as well as homemaker
services. Adult day care benefits are usually included also.
The home health care benefit the carrier will pay is usually
based on a percentage of the daily benefit. For example,
if you choose
a 100% home health care benefit, you would receive 100% of
the daily benefit you selected for services in your home.
The choices
vary
by carrier, but some other examples are 75%, 50%, 100%, or 130%.
Benefit
Period
The benefit period can range anywhere from one year to
unlimited years (lifetime coverage). The benefit period
is also stated
as number of days of coverage multiplied by the daily benefit
to equal a lifetime
maximum amount of money to pay for your care. For example,
if you purchased a four-year benefit period with a daily
benefit of $200,
this would give you a lifetime amount of 1,460 days X $200
=
$292,000.
Waiting Period
The Waiting Period options are: 0, 20, 30, 60, 90, 100,
180, 365, or even 730 days. This is similar to the deductibles
you are used
to in other types of insurance. The longer the Waiting
Period,
the lower the premiums.
Inflation Protection
The two most common are 5% compound and 5% simple inflation
protection. These options increase your benefits over
time, but your premiums
stay level for the life of your policy. For a $100
policy with 5% simple inflation, the benefit increases $5 every
year, and
is $150
after 10 years. For a $100 policy with 5% Compound
Inflation,
benefit increases 5% per year and is $162.89 after
10 years.
You may choose a Cap on Inflation Protection which lessens the cost of this option. The Cap limits the amount that the Daily Benefit can increase to 100%.
Discounts Available
If you are in excellent health, the discounts range
from 10% to 25%. Insurance companies use applications,
Attending
Physician
Statements
and interviews to determine who qualifies for a preferred
rate.
Spousal discounts range from 10% to 60% and can apply
even if the spouse is declined or does not purchase
coverage.
The AFSA discount ranges from 5% to 10% depending
on the insurance company.
Please complete the AFSA LTC
Quote Request Form to
receive a free quote. |
