Long Term Care Insurance Benefit Period and Other Features of LTC Plans
Long term care insurance policies may be complicated and hard to understand but it is undoubtedly one of the most important investments that an individual can give to himself. These policies are also proven helpful and beneficial especially to those who no longer have financial resources to pay and compensate for the LTC services that they will use in the future. But an individual must fully understand the terms and conditions of LTC insurance plans that are available and being offered to him. He must bear in mind the three mandatory features that all LTC insurance plans must have and these are the LTC benefit period, minimum daily benefit amount, and inflation protection.
Of these three compulsory features, the inflation protection is considered the most important. This is because of the fact that it has the ability to adjust and regulate the values of certain LTC insurance plans and make it updated based on the current amount and rates of LTC services.
The inflation protection also has certain levels that determine the kind of inflation protection that will be given to the individual. These levels are based on the age of the person when he acquired his policy. Higher levels of inflation protection will be given to those who acquired their policies at a much younger age.
For policies bought at age 60 and below, a compound or an inflation protection based on the Consumer Price Index (CPI) might be given, while for policies that were purchased at age 76 and above need not require to have inflation protection but the insurance provider may still offer it to the individual.
The long term care insurance benefit period on the other hand, determines the length or duration of a certain policy wherein the insured person may still receive his policy benefits. According to some studies, the average stay of a person in a nursing home facility usually lasts up to three years. This is important to know so that the individual will have an idea on the duration of the benefit coverage period that he will have. Shorter insurance benefit period means cheaper and lower rates for the plan’s monthly premiums.
Lastly, all LTC insurance plans must have the daily benefit amount. This will act as a guide and basis for the insured person regarding the amount of LTC services that he is allowed to have for every day that he will make use of his policy benefits. There are certain types of insurance policy options that vary on the way they pay the LTC services incurred by the policyholder but it is a strict condition that any amount that will exceed the allowed benefit amount will be paid and covered by the insured individual. He can no longer receive reimbursements and payment for the extra costs that he has used.
Having correct and full understanding of the LTC insurance policies will make it easier for the person to decide and have the most fitting policy for himself. Just remember the three mandatory features: long term care insurance benefit period, minimum daily benefit amount, and inflation protection and for sure, you will never go wrong with the LTC insurance plan that you acquired.
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