Benefit Limit: The number
of years that a plan will pay
a benefit from the time you
get sick. Benefit limits
generally vary from one year
to lifetime coverage. The
longer the benefit limit, the
greater the protection but
the higher the cost.
Inflation Protection:
Sometimes called an
"inflation rider", this provides
you with a way for your daily
benefits to increase over
time. Otherwise, the policy
may not be sufficient to
protect you many years from
now. Long term care
insurance policies normally
contain riders offering
automatic daily benefit
increases of 5 percent each
year, either at "simple" or
"compounded" rates.
Elimination Period:
Amount of time that you
agree to pay out of your
own pocket before the plan
(policy) begins to pay. This
period normally varies from
0 to 100 days. The 100-day
elimination period will
produce the smallest
premium cost to you.
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