How Long Term Care Insurance Benefits Are Defined

Long Term Care Insurance (LTCI) benefits are defined in the actual contract as a maximum amount of money payable per month or per day for a maximum number of years (such as 3, 4, 5, 10, or lifetime).    If the LTCI policyholder uses less than the maximum amount of benefits permissible in a given period,  the unused money extends the maximum number of years that benefits will be payable.  This feature is known as the pool of money clause found in most LTCI policies.

Some group LTCI policies may pay different amounts per day or per month for care in a particular setting.  For example, group plans commonly pay only 50% or 75% of home health care.  The blue-chip LTCI companies represented by LTC Tree pay 100% benefits in ALL settings.  When buying Long Term Care Insurance, make sure your policy pays 100% benefits in all settings as well, especially home care. 

Most LTCI policies pay a fixed daily reimbursement amount for the cost of care up to a daily or monthly maximum.  Again, group LTCI plans, such as the one offered by the Federal Government (ltcfeds.com), penalize the policyholder for using the most popular benefit, home health care, by paying only 75% of the policy's daily benefit amount. 

Almost always, however, a relatively healthy person can get more Long Term Care Insurance benefits (i.e., 100% home care) for less money with the exact same companies that offer the group plan by simply buying an individual Long Term Care Insurance policy.