Thursday, May 10, 2012

Long-Term Care Insurance, Daily Benefit Versus Monthly Benefit

One of the core benefits to a long-term care insurance policy is the daily benefit, this is the amount per day that the insurance company will pay for your care. This amount is distinguished from the start of your policy, you and your agent will decide what is the best and most suitable daily amount for you. This is not a one size fits all benefit, there are several variations that are involved, such as how much you can afford, what is the average cost of care daily in your state, do you plan on adding inflation protection to increase this amount each year to keep up with the rising costs of care, etc. There are lots of factors invloved as you can see. In this example we are going to use $150 a day as the daily benefit.

Let's say you have a policy and it covers $150 a day, the insurance company will pay for your care up to $150 and that is the cap, which is fine...! But what if you wanted and had the choice to have more flexibility with your daily benefit, where you could receive multiple service in one day without having to worry about capping out your daily benefit? What if your care cost $200 one day, you would be responsible for the remaining $50.

That's where a monthly long-term care insurance benefit would come in. A monthly benefit gives you more flexibility. That $150 a day would then be $4,500 a month, with this you could receive care one day for $200 and you would not be responsible for the remaining $50. A monthly benefit pays on a monthly basis, so you can use $300 one day, $50 the next, $0 the following day, and so on.

Most carriers, but not all, do offer a monthly benefit. Some offer this as an additional benefit rider, where they would charge more if you choose this rider and others automatically have this included in their policies. It just varies from LTC company to LTC company. To to see what carriers offer this benefit complete this confidential form at


  1. It is difficult to predict the duration for which the insurance benefits of long term care will be required, or the amount for the daily care. The daily benefit amount is thus going to vary, according to the requirements of different individuals. This type of insurance is also influenced by the cost of care in the locality, and the inflation over the years.

  2. I think that monthly benefits are better. I mean it gives a lot more flexibility and therefore more options as for me. I do not like the idea of paying for the additional rider though, but looks like I am still going to be applying for payday loans in 1 hour so it is ok to borrow a little bit more than I originally wanted to. Still I agree with the previous comment: it is impossible to predict what is going to happen with you, I do not know what requirements is going to be necessary but I would feel more confident with the monthly benefits one.