Daily Benefit
Maximum benefit period
Inflation protection
Elimination period
Where long term-care is provided
Home Care:
Assisted Living:
Nursing Home:
Other Special Policy Features
Daily Benefit back to top
Choosing a daily benefit that meets your needs will be one of the first decisions you will have to make. The cost of care varies from state to state, so first consider where you will live when you are most lively to receive care and research costs in that area. In Washington, long-term care insurance is bought in $10 increments beginning at $40 per day and on up to $300 per day. The cost of care in Washington is averaging about $160 per day. The more coverage that is purchased, the higher the premium will be.
Maximum benefit period back to top
The maximum benefit period will be your next consideration. This feature is the number of years you want your coverage to last if you need care. In general, your options are 1 through 5 or 6 years, or lifetime coverage. Policies with larger maximum benefit periods will cost more.
Inflation protection back to top
The third consideration is whether to include inflation protection or not. While plans vary, most will offer a choice of 5% compound inflation, 5% simple inflation, or no inflation. Inflation protection is one of the most important additions you can make to a long-term care policy. Simply put, this rider automatically increases your daily benefit amount each year, keeping your policy up-to-date with inflationary trends. Watch out for companies who market a future purchase option as inflation protection. Over time this can become very costly. Be careful to purchase an age appropriate option. Purchasing no inflation protection at a young age can have devastating consequences.
Elimination period back to top
The fourth decision is whether of not you want a deductible or elimination period. The elimination period is the period of time you have to wait before you receive benefits. During the elimination period, the policy will not pay for long-term care services. Options range from 0-day, 7-day,20-day, 30-day, 50-day, 60-day, 90-day, 100-day, 180-day and 365-day elimination periods. It is our recommendation that you do not consider anything over a 100-day elimination period. With many companies lengthy elimination periods may not offer the cost savings most would expect.
Where long term-care is provided back to top
Long-term care can be provided in a number of different settings. Choices are available depending on the level of care needed to maintain a safe, healthy environment.
Home Care: back to top
Assistance can be provided in your home to help you manage and maintain your household activities so that you to remain safe in your home. Services for occupational, physical, respiratory, speech therapy, nursing care, social worker, or home health aide are typically included in a home care benefit. Also included are medical, social worker, home health aide, and homemaker services. Many also include homemaker and chore services.
Policies will differ in how care must be provided. Some policies state that care must be provided through a Home Health Care Agency while others allow licensed, independent caregivers. Still others allow family and friends to be caregivers.
Assisted Living: back to top
This is a residential living arrangement that provides individualized personal care and health services for people who require assistance with activities of daily living. This is the fastest growing design for long-term care services, providing for housekeeping and meals, social activities, personal care and monitoring, as well as medical monitoring.
Nursing Home: back to top
A facility that provides room and board and a planned, continuous medical treatment program, including 24-hour care, 7-days a week. Care can be skilled nursing care, personal care or custodial care. This care more closely resembles institutional or a hospital-like setting.
Other Special Policy Features back to top
· Waiver of Premium - This option waives the premium payment while benefits are being paid to you on your behalf.
· Restoration of Benefits - This option gives you a way to keep the maximum amount of your original benefit even after your policy has paid you benefits. In most policies, if you recover from needing benefits for 180 days, your benefits restore to the original amount you purchased.
· Guarantee Renewable - This provision means the insurance company cannot change the coverage or refuse to renew the coverage for other than nonpayment of premiums.
· Survivorship - This benefit will allow for a surviving spouse to have a paid-up policy upon the death of his/her spouse if the policy has been in force for the stated number of years and no benefits have been used.
· Spouse discounts - Most companies allow for a spouse discount when both spouses apply for coverage with the same company.
· Married discounts - Some companies allow for a discount if the person applying is married and may also apply this discount regardless if the spouse is applying for coverage or not.
· Preferred health discount - Companies allow for a varying degree of discounts due to good health.
· Guaranteed rates - Some companies have a guaranteed period of time that rates will not be increased for any reason.
· Third Party Designation - This benefit lets you name someone who the insurance company can contact if your coverage is about to end due to lack of premium payment. This can be a relative, friend, or professional such as a lawyer or tax advisor.
