How Does LTCi Work?

Plan Summary / Built In Benefits

Maximum Daily Benefit

The maximum amount the insurance company will reimburse you for eligible care expenses on a daily basis. E.g. $200 per day

Pool of Money

The total amount available over the lifetime of the policy to cover eligible expenses. 

The pool of money can be established by:

  • Benefit period quoted in years.  For example, a Maximum Daily Benefit of $100 and a benefit period of 3 years translates into a pool of money of $100 x 365 days x 3 years = $109,500
  • A round dollar-figure.  For example $125,000

Benefit Increase Option [BIO]

The way your benefits grow over time.  Common options include Tailored BIO or 3% Step Rated Compound BIO.

Elimination Period [Deductible]

The number of care-days you pay for care out of pocket before reimbursement from the policy starts. 

All policies cover care received in your home, in an assisted living facility, or in a nursing facility.  Once benefits are payable, premiums are waived, meaning you no longer have to pay the insurance carrier once they are reimbursing you for covered costs. 

Some policies have cash benefits available in lieu of being reimbursed.  Usually the amount of cash available is a percentage of the daily benefit paid out on a monthly basis.  Cash can be used in any way a policyholder sees fit, even to pay a family member for providing care!

Additional Built In Features:

  • Alternate Plan of Care Benefit
  • Global Coverage Benefit
  • Hospice Care Benefit
  • Long Term Care Facility Bed Reservation Benefit
  • Respite Care Benefit

Contact an Authorized Enroller for more information!

*Not all features available in every state.  Subject to availability.  Ask a representative for detailed plan information.