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What is the “Daily Benefit” (a.k.a. “Monthly Benefit”) in a long-term care policy

The Daily Benefit is the amount of money your long-term care insurance policy can pay for each day that you receive qualified care.

The Daily Benefit is the single-most important feature in your long-term care policy.  Choose it wisely!

The Daily Benefit is sometimes referred to as the “Starting Daily Benefit” or the “Original Daily Benefit” because your Daily Benefit will grow according to whichever Inflation Benefit you choose for your long-term care policy.  (Or it won’t grow at all if you choose not to have any Inflation Benefit protection in your LTC policy.)

You choose how much you want your Starting Daily Benefit to be. (You also choose the Inflation Benefit.)

Most long-term care policies have many choices for the Starting Daily Benefit.  You can choose a Starting Daily Benefit as low as $50 per day to as high as $500 per day.  The choices for the Daily Benefit are usually offered in $10 increments.

The higher your Starting Daily Benefit, the higher the premium.

With some policies the Daily Benefit is referred to as a Monthly Benefit.  For example, a long-term care policy with a $200 Daily Benefit is similar to a $6,000 Monthly Benefit.

Make sure you also read:

2 “gotchas” you need to watch out for you when choosing your Daily Benefit


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


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.

One comment on “What is the “Daily Benefit” (a.k.a. “Monthly Benefit”) in a long-term care policy

  1. […] How much will your policy pay for each day that you receive personal care? (Daily Benefit) […]

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