Page 48 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

30 Growing Old Without a Plan for Long Term Care is not for Sissies risk of needing long term care sooner rather than later as a result of those health conditions. If your advisor has not asked you health questions prior to preparing a quote, beware! Your quote might be inaccurate. Gender: In the past, there was no difference in premiums for men and women. However, the insurance companies have seen that the total benefts paid to women are much higher than those paid to men. By charging men and women the same rate, the com- panies were essentially overcharging the men and undercharging the women. Many insurance companies have made the transition to gender based rating in an effort to be more accurate in the pricing of Long Term Care Insurance. Beneft amount: As we learned in Chapter 3, the beneft amount is the maximum the insurance company is obligated to pay for your care on a daily or monthly basis. Naturally, if you choose a daily beneft of $100, the premium would be much less than a daily beneft of $200. Beneft Period: Again, from Chapter 3, this is the minimum time frame the company is obligated to pay your beneft, usually expressed in years or months. While a shorter beneft period has a lower premium, don’t assume that a beneft period of 4 years will be twice the cost of a 2 year beneft period. Because some people who purchase a 4 year policy end up needing care for less than 4 years, the company is able to offer each successive year at a lower premium than the frst or second years. Elimination Period: The elimination period or deductible is the number of days you pay for your own care before the company starts paying. The longer your elimination period, the lower the premium.