How Long Term Care Insurance Benefits Are Defined

Long Term Care Insurance benefits are defined in the actual contract to be a maximum amount of money payable on a daily or monthly basis and for either a maximum number of years (2,3,4,5,6 yrs) or an unlimited or lifetime benefit period.   If the long term care insurance policy holder uses less than the maximum amount of benefits permissible in a given period,  the unused money extends the maximum number of years benefits will be payable.  This is feature is known as the pool of money clause found in most all long term care insurance contracts.

Some group long term care insurance policies may pay different amounts per day or per month for care in a particular setting, such as a home health care or assisted living facility (50% or 75% home care is common in group plans).  The blue-chip long term care insurance companies that we represent will pay 100% benefits in ALL settings.  When buying long term care insurance make sure your policy will pay 100% benefits in all setting, especially for home care. 

Most long term care insurance policies pay out a fixed daily reimbursement amount for the cost of care up to a daily or monthly maximum.  Again, group long term care plans such as the popular one offered by the Federal Government (ltcfeds.com), penalize the person for using the most popular benefit--home health care by paying just 75% of the policies daily benefit amount.  Most every-time if relatively healthy, a person can get more long term care insurance benefits (100% home care) for less money with the exact same companies that offer the group plan if they simply buy an individual long term care insurance policy.