From LongTermCareInsurance.Org
Most Long Term Care policy decisions revolve around Setting of Care, Benefit and Elimination Periods and, if you wisely want it and can afford it, Inflation Protection. While every policy is different ( and you should thoroughly understand all the wording ) the most common decisions are found below:
Where Might You Need Long Term Care?
Facility Only – Covers care received in a licensed Assisted Living or Skilled Nursing Facility, but not for care received in your home or in non-licensed care settings.
100% Integrated Home Care – Covers care received both in a licensed Assisted Living or Skilled Nursing Facility, plus non-licensed settings and home care.
How Much Will You Need?
Maximum Daily Benefit can be from $50 – $400
How will your Long Term Care insurance policy to pay out per day? This can also be paid in weekly amounts.
Benefit Period choices: Can be 2, 3, 4, 5 or Unlimited years
How long will your policy pay for your Long Term Care?
Elimination Period: Can be for 0, 20, 30, 60, 90 or 100+ days
How long can you afford to wait before your LTCi policy starts to pay? Longer elimination period = lower premium, but if you choose a longer elimination period, make sure you have the savings or assets to cover that period of care.
Inflation Protection: 5% Annually Compounded or 5% Simple inflation
Increases the dollar value of your benefit each policy year. 5% Compounded is recommended for people under 70 years of age in order to keep up with the 6% inflation that is currently being experienced in the health care sector. Many individuals age 70-80 choose 5% Simple and most people over 80 choose not to pay for an Inflation Rider, as it might not be needed.
Inflation Riders increase the premium price considerably for regular LTCi policies, but considering the rate of inflation, not buying one at a younger age is risky.
Original Content: http://longtermcareinsurance.org/longtermcareinsurance.html#gpm1_3
Visit www.californialongtermcare.com if you have any questions, or need help with a Long Term Care Insurance policy in California.
