Page 42 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

24 Growing Old Without a Plan for Long Term Care is not for Sissies and inadequate premium pricing which eventually resulted in rate increases. Today those problems are pretty much gone. Compre- hensive policies offer signifcantly expanded coverage and options compared to nursing home only plans. Claims problems are rare. Most experts believe policies purchased today are much more likely to be priced properly, signifcantly reducing the likelihood of future rate increases. Long Term Care Insurance policies sold today offer the fex- ibility consumers want and the security they need. Long Term Care Insurance policies vary from company to company and many companies offer more than one policy. Still, there are some basics that are part of most policies. Beneft Amount This is the maximum amount the insurance company is obligated to pay on your behalf when you need long term care. This limit is usually expressed as “dollars per day” or “dollars per month”. For example, the policy limit may be $200 per day or $6000 per month. The preferred choice would be dollars per month because that gives you more fexibility, especially for home health care that is not needed every day. Beneft Period This is the amount of time that the beneft is planned to be paid over for example thirty-six months. Because of the way the policy is structured, this is in effect a minimum time frame. If benefts are used at a rate less than the daily or monthly maximum, the beneft period is extended. Some companies refer to this as the “Beneft Multiplier” because it is multiplied by the beneft amount to cal- culate the Total Beneft.