Elements of LTC Insurance - Benefit Period

The benefit period is the length of time that benefits will be paid. Most companies offer 2, 3, 4, 5, 6, 8, 10 or Lifetime benefit periods. The actual amount of time your policy will last is dependent upon the cost of care and your benefit amount. For example, if you have a $5000/month benefit and 4 years of coverage and the cost of your home care is only $2500/month, then your benefit will last 8 years.

The benefit amount and benefit period work together in most policies to create a pool of money to draw from. Your policy will last until the money is gone. The minimum amount of time a policy will last is the benefit period you select as you cannot receive more than your benefit amount.

How do you pick a benefit period? I suggest you look at your family history and your own health as a starting point. If you have a history of Alzheimer's or strokes, then a longer period of time may be appropriate. The main concern is that your policy should be affordable. Get a benefit period that makes the premiums affordable. The longest you can afford to get, the better. My rule of thumb guideline would be a 4 to 6 year policy will be sufficient for most people. There is always the chance you'll need longer than 6 years, but a majority of people's care is less than that.