Long Or Short? Whats The Ideal Ltci Benefit Period?

Because the cost of care is getting higher every year

, people are wondering if it is right to go for a long term care insurance benefit period that is longer than three years, which is the average length of time that most people would require care.

Just like the maximum benefit amount, inflation protection, and elimination period, the benefit period of a long term care insurance (LTCI) policy is very vital, too, as it determines the exact duration that an insured individual will receive his insurance benefits.

While it is ideal to have a longer benefit period this will subject you to a very high annual premium. If you can afford to fork out $5,700 annually, or perhaps $15,000 if youre 65 or older, there is absolutely no reason you should not settle for a long benefit period. However ideal that can be, if youre working around a limited budget for the price of your LTCI policy discuss with your agent the necessary adjustments that you have to make to your benefit period.

People with a longer life expectancy are encouraged to secure an LTCI policy with a benefit period that is longer than three years. They are not, however, forced to shell out money that is not available to them as they can opt for policies that comply with the partnership program.

Owners of partnership LTCI policies can apply for Medicaid without spending down their assets should they require further care after they have exhausted their benefits. Many people on a tight budget are opting for partnership certified LTCI policies because aside from the fact that it enables them to save on their annual premiums, it has made Medicaid available to them in case they would need extended care in the future.

Long Term Care Insurance Benefit Period

Meanwhile, some people find a reimbursement LTCI policy beneficial as it builds for them a personal pool of benefits which they can utilize after they have exhausted their benefits.

From a spectators point of view, some areas of a reimbursement policy are similar to that of a partnership qualified LTCI policy except for Medicaid, as the former is not associated with the said federal health insurance program.

Perhaps the common denominator between a reimbursement policy and a policy under the partnership program is the strong emphasis placed on the benefit period. Notice that partnership qualified LTCI policies encourage people to buy a policy with a short benefit period so they can save on their annual premium because in case they would require further care afterwards Medicaid is on standby.

Reimbursement LTCI policies, on the other hand, reimburse insured individuals their total expenses on care while the remainder of their daily benefits are placed in a pool of benefits. This pool of benefits can be utilized by the insured once he has reached the end of his benefit period and his insurance benefits have been used up.

Discuss your long term care insurance benefit period with your insurance agent and make sure to open up your budget and health issues so that he can provide you with the best option.

by: Julienne Howard

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