How do I choose my daily (or monthly) benefit amount?

The daily benefit amount is the maximum amount you can expect to receive for any day on which you are eligible for benefits. In designing your LTC insurance plan, you want to choose a daily benefit that will cover most, if not all, of your likely cost of care when you become benefit eligible. With many types of insurance, one minimizes the cost of the insurance by accepting some level of risk in the form of copayments. However, with LTC insurance, we recommend that any such self-insurance be in the form of (1) an elimination period or (2) a limited benefit duration (i.e., lifetime maximum benefit). As a general rule, a “short and fat” LTC plan – i.e., one with a large daily benefit and a somewhat short benefit duration – is better than a “long and thin” one.

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