LTC Basics - Benefit Period

The benefit period is the amount of time that benefits will be paid once you begin receiving care. Typically this is stated in a number of days or months. For example, you may have a policy with a 72 month benefit period. This equates to about 6 years of time.

If you don't use your entire daily or monthly benefit (see 4/10's posting), then the benefit period may actually end up being longer than you thought. For example, if you have a monthly benefit of $5000 and you are only using $3000/month, then a 72 month benefit period will actually last 120 months or 10 years. Whatever you don't use of your monthly benefit stays available to you and lengthens your benefit period.

The average person experiences about 4 to 6 years of care. This can be a combination of home care and facility care. Your personal history and family genetics may lead you to need a longer or shorter period of time. What is affordable to you may also determine how much time you purchase.