Long Term Care insurance isn’t a one-size-fits-all product. You can customize your plan to access benefits faster and keep your benefits growing. When making a long term care plan, consider these six recommended options for Long Term Care insurance.
Calendar Day Elimination – Get your benefits faster
Before you are eligible to receive benefits, you must satisfy an elimination period. Depending on the product, the elimination period could be service day (each day you receive care services counts toward the elimination) or calendar day (each day counts toward the elimination regardless of if care services are received).
When most people start receiving services, they may not need daily care. This means a 90 service day elimination could last much longer than 90 days. Calendar day elimination ensures your elimination period is satisfied in a specified number of days so you can access benefits faster.
If a calendar day elimination rider is available – buy it. Or, choose a product with a built-in calendar day elimination period.
0-Day Elimination for Home Care – Care when and where you need it
Even a 90-day elimination period can seem like a long time to pay for care services on your own. The 0-day elimination for home care rider allows you to access home care benefits before satisfying the elimination period.
Keep in mind, while you’re using 0-day home care benefits, these days do not count toward your elimination period. You must stop receiving home care benefits and satisfy your elimination period before being eligible for full benefits, including assisted living or nursing home care.
Monthly Benefit – Flexibility in benefits
A monthly benefit offers greater flexibility in how your benefits are paid. The cost of daily care can often vary by day and services received. If you chose a $5,000 monthly benefit, you’ll receive up to the monthly limit no matter how much is spent for care each day.
A monthly benefit is often built-in to current products or may be available as a rider. Make sure to ask your LTCI Specialist about this option.
3% Compound Inflation – Keep your benefit growing
Inflation protection is important to keep your benefit growing until you use it. With 5% compound inflation pricing many buyers out of the market, 3% compound is a cost-effective way to grow your benefit compounding each year at 3%.
Shared Care – Share coverage with your spouse or partner
When you buy coverage with your spouse or partner, consider adding the Shared Care rider. This rider acts as a bridge over your two benefit pools allowing you to use your spouse/partner’s benefits if you exhaust your own. With Shared Care, sharing really is caring!
Joint Waiver of Premium – Stop paying premiums when one goes on claim
When an LTCI policyholder goes on claim, they no longer need to pay premiums while they receive benefits. But what if your spouse goes on claim and you’re not eligible for benefits yet? The Joint Waiver of Premium rider allows both spouses to stop paying premiums when one goes on claim.
Have you made your long term care plan? Start by getting to know your options. Use our online quoting tool to find current rates for top-rated LTCI carriers.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.