Paying the Price of Your Benefit Period

Just like the maximum benefit amount, inflation protection and elimination period, the long term care insurance benefit period determines the policyholder’s annual premium since it is the length of time that he will receive his benefits. Policies with a shorter benefit period equate to a lower annual premium while a longer benefit period is tantamount to a higher premium. This information does not suggest in any way though that everybody should go for a shorter benefit period so that they can save on their premiums. Your long term care insurance (LTCI) policy’s benefit period should be based on your health care requirements and budget. For instance, if your family has a history in liver cancer or heart diseases you probably have an idea of the length of time that you will require care someday. It’s not saying that you will end up with cancer or heart attack, too, but the fact that these health disorders run in your family might make you want to consider genetic testing so that you are aware of the specific type of treatment and follow-up care that you will need in the future. To receive quality care is, after all, the whole point of constructing an effective LTC plan which starts with looking up your family’s health history and checking its relevance to your present health condition. Meanwhile, if your family’s health records do not exhibit degenerative diseases it only means you can live to be 100 without any health problems, or you can develop or acquire a geriatric disease as you go through the aging process. There have been stories of old men and women who have managed to retain their clear vision and memory up to the age of 100 but they are paying for custodial care since they can no longer perform the activities of daily (ADL) living on their own. Identifying Your Long Term Care Insurance Benefit Period Many people still misconstrue the real objective of LTCI policies. They think with this type of coverage they or their loved ones can emerge unscathed from a chronic illness and go back to their normal lives. There may be cases of individuals who have managed to bounce back after receiving years of care but this is not the main objective of LTC. Its primary goal is to provide care for people who are no longer capable of performing the activities of daily living (ADL) due to serious injuries caused by accidents, sickness, functional limitations, or cognitive impairment. When you can no longer get up from bed in the morning, go to the bathroom by yourself, prepare your own food, or dress up like you used to then you need a caregiver or a nurse to assist you. Now if you own an LTCI policy, this is precisely when you can start to claim your benefits from your insurer but if you don’t have a policy, you will not get any insurance company’s approval anymore even if you ask your children or spouse to apply on your behalf. Your policy should be secured years before your need for care arises and that can only be done if you take the time to work on identifying your long term care insurance benefit period. It is advisable to discuss your plan with your family and a licensed LTCI agent.