What is the relationship between the benefit duration and the lifetime maximum benefit (or pool of benefit dollars)?
LTC insurance plans typically pay benefits until you use up the plan’s lifetime maximum benefit (also known as the “pool of benefit dollars.” Often, plans will also speak of a benefit duration in terms of calendar days or years. However, that stated benefit duration is simply a multiplier that is used to calculate the lifetime maximum amount. As long as the lifetime maximum has not been used up, benefit payments can continue. This means that benefit payments may continue well beyond the stated calendar duration.
Some LTC plans offer an unlimited lifetime maximum benefit or “lifetime” benefit duration. Under such plans, one can receive benefits indefinitely – as long as one is alive and benefit eligible.