How Much Does Long-Term Care Insurance Cost?
Long-term care insurance policies provide great flexibility in benefit design. This lets you choose the amount of protection that best suits your personal needs and budget. The cost of your long-term care insurance policy is based on:
- Your age when you buy the policy
- Your health
- The maximum amount the policy will pay
- The maximum amount the policy will pay per day (or month)
- Elimination period (a deductible in days)
- Any optional benefits such as inflation protection
Understand Long-Term Care Benefits
Similar to life insurance, you select a long-term care insurance policy value such as $250,000, $500,000 or a $1,000,000.
The LTCi Benefit Multiplier table below illustrates the flexibility you have with choosing your long-term care coverage. This lets you select how much risk you want to transfer to an insurance company.
Your long-term care advisor will make suggestions and some choices will vary by company. We also list several ways to lower your LTC Insurance premiums.
LTC Insurance Benefit Multiplier ( A x B = C )
|(A) Maximum Daily Benefit||(B) Benefit Period||(C) Policy Maximum Amount|
|Select a Maximum Daily Benefit from $50 to $500 per day.|
This selection is generally based upon the cost of care in your area. We have detailed cost of long-term care information to assist you.
|Select a Benefit Period.|
• 2 Years (730 days)
• 3 Years (1,095 days)
• 4 Years (1,460 days)
• 5 Years (1,825 days)
• 6 Years (2,190 days)
|Your Policy Maximum Benefit will equal the Maximum Daily Benefit Multiplied by the Benefit Period you select.|
For Example: $100 (Maximum Daily Benefit) x 730 days (2 year Benefit Period) = $73,000 Policy Maximum
|Sample Policy One: $200 Daily Benefit X 3 Years (1,095 DAYS) = $219,000 Policy Maximum|
Sample Policy Two: $300 Daily Benefit X 5 Years (1,825 DAYS) = $547,500 Policy Maximum
Sample Policy Three: $500 Daily Benefit X 6 Years (2,190 DAYS) = $1,095,000 Policy Maximum
Long-Term Care Benefit Trigger
Your long-term care insurance benefits are typically triggered by one of the following:
- Physical impairment requiring assistance with activities of daily living (ADL’s) such as: bathing, continence, dressing, eating, toileting and transferring.
- Cognitive impairment such as dementia or Alzheimer’s disease. For example, an individual may be able to physically take care of their activities of daily living, but forget to turn off the stove or cannot remember where they live.
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Types of Long-Term Care Benefits
Indemnity vs Reimbursement LTC Insurance
Let’s look at Indemnity Vs Reimbursement long-term care coverage. There’s also a Cash Benefit plan described below, which is closely related to the Indemnity long-term health insurance policy. Each type has its advantages, generally based on the needs of the insured at time of claim.
Understanding Indemnity vs Reimbursement differences before you buy insurance allows you to make the best choice for your future needs.