|
Long-Term
Care Insurance: How Much Will Your Policy Pay?
IMPORTANCE RATING: 5
The
benefit amount is the ongoing amount of money the insurance
company will pay if you have a claim on the policy. The
benefit amount is the most important decision to make in designing
long-term care insurance coverage. It is also the most
influential factor effecting the amount of your premium.
The benefit amount is expressed in a dollar
amount per day, week, or month. For example, if you purchased a policy
with a daily benefit amount of $150, you would collect about $4,500 per
month when you become eligible for benefits, not including inflation
adjusted benefits.
How do you determine what benefit
amount is right for you?
By examining several factors, you will be
able to determine the appropriate amount for your unique situation:
1. Determine the cost of care in your area (Click Here for Cost of Care
Map)
2. Define your risk tolerance philosophy
3. Review your personal and financial
objectives
4. Determine your budget for long-term care
insurance premiums
This process analyzes and determines
whether to
purchase coverage that will pay the full average cost of care, or
whether to co-insure by electing coverage that pays for some, but not
all of it.
REOMMENDATION:
Start by considering a
benefit amount that covers the full average cost of care in your area.
Then, if applicable, adjust the benefit amount downward based on your
risk tolerance philosophy and the amount of money you are budgeting for
LTC insurance.
Return
from How Much Will Your LTC insurance Policy Pay
to Customizing Your Long-Term Care Insurance Coverage
|
