Page 74 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

56 Growing Old Without a Plan for Long Term Care is not for Sissies for part or all of the cost of your care. Here are some of the components of a typical linked beneft policy: Initial Specifed Amount: This determines the amount of both your death beneft and your long term care beneft. It is based on the amount of your initial premium, your age, your health status and your gender. It will also be affected by riders and options you choose and the current interest rate credited to your policy. When your policy is issued, the initial speci- fed amount is equal to the death beneft you applied for. Current Specifed Amount: This is your initial specifed amount after interest is credited and policy charges are ap- plied. This typically grows over time until you start to receive long term benefts and then begins to shrink as the benefts are paid. Death Beneft: This is the amount that will be paid to your benefciary upon your death. Your death beneft will be reduced by payments you receive for long term care. Many policies have a minimum death beneft of around 10% of the initial death beneft when your policy was issued. Accelerated Beneft Rider/Long Term Care Beneft: This is the rider attached to your life insurance policy that allows the company to pay your long term care benefts prior to your death. The amount available for your long term care each month is your specifed amount divided by 24, 36 or 48 months. Example: A policy with a specifed amount of $100,000 paid over 24 months would make $4167 available for your care each month for 24 months.