How does your choice of Daily Benefit affect the cost of your long-term care policy?

When all other features in your long-term care insurance policy are the same, a policy with a $240 Daily Benefit is 20% more premium than the exact same policy with a $200 Daily Benefit.  ($200 + 20% = $240)

But, when making those comparisons, it’s important that all other factors are equal. The most common mistake made make when shopping for long-term care insurance is NOT comparing apples-to-apples.

For example, at first glance, a policy with a $200 Daily Benefit and a Future Purchase Option Inflation Benefit costing $100 per month, might seem better than a policy with a $150 Daily Benefit and a 5% Simple Automatic Inflation Benefit, for the same premium.  Although the first has a higher Daily Benefit, the latter has a stronger Inflation Benefit.

It’s vitally important when comparing long-term care policies to compare identical (or nearly identical) benefits, especially the:  Daily Benefit, Inflation Benefit, and Benefit Period.


About Scott A. Olson

Scott A. Olson, is the author of “The Guidebook for Making Long-Term Care Insurance Easier.” He is a licensed insurance agent and has specialized in long-term care insurance since 1995. He is licensed to sell long-term care insurance in over 40 states. Scott was born and raised in New Jersey and attended Rutgers University. Scott was a caregiver for a close relative for two years. That personal experience has made him acutely aware of how to help his clients design and choose a long-term care policy that will benefit them when they need it the most. Scott and his wife Carolyn live in Redlands, California. Scott and Carolyn have four sons.