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 CHCA discount ranges from 5% to 10% depending on the insurance company.
Please complete the CHCA LTC Quote Request Form to receive a free quote. |
