Long-Term Care Insurance

Education

Basics of Traditional LTCi

When the need for care first arises, you will probably turn to family members or friends. However, your needs may go beyond their ability to help: either physically or financially.

That is where LTCi comes in. With a wide range of options, you can get the type of care you need, in the setting you want. Most policies today cover home care, adult day care, assisted living, nursing home, and hospice care.

Below are the key components of a long-term care policy. An advisor can help you choose the options that best fit your needs and budget. Not all options are available with all policies or in all states.

Select the amount of coverage you want your policy to pay each day.

The Daily Benefit Amount is the maximum dollar amount that a policy will pay for care received. Click on this link to look up cost of care in your area at https://www.genworth.com/about-us/industry-expertise/cost-of-care.html  (Options: $50 per day through $400 per day).

Choose the length of time before benefits are paid.

The Elimination Period is like a deductible. You choose the number of days you will pay your long-term care costs on your own, before your benefits begin. Benefits are payable only after you are chronically ill and are receiving primary services for the number of days selected. (Options: lowest = 30 days, highest = 365 days). The most common elimination period that people select is 90 days.

Select the length of time you want your policy to pay.

The Benefit Period represents the minimum period of time (in years) you can expect your coverage to last. (Options: lowest = two years, highest = unlimited). Most policies are issued with three to five year durations.

Make sure your benefits keep up with the rising cost of care.

Due to the rising costs of long-term care services, it is important that the coverage you select today also meets your future needs, which could be 10, 20, or 30 years from now. Inflation protection riders help maintain the worth of your coverage over time. Typically we recommend either 3% or 5% automatic compound inflation protection. Other lower cost choices are available; however, these options do not provide as much benefit growth.