Does a long-term care policy’s “Policy Limit” grow?

With most long-term care insurance policies, as your Daily Benefit increases according to the Inflation Benefit, the “Policy Limit” also increases.

For example, if you were to choose the 5% Simple Inflation Benefit, and a Starting Daily Benefit of $200, your Daily Benefit would grow by $10 each year.  The Daily Benefit would be $300 by the end of your policy’s 10th year.

The “Policy Limit” would increase as well.  Assuming that you had not made any claims, by the end of the 10th year, the “Policy Limit” would have grown from $438,00 to $657,000. That is calculated as follows:

$300 per day x 365 days per year x 6 years = $657,000

This is another reason why it’s very important to choose a good Inflation Benefit for your long-term care policy.

Unfortunately, all too often, people will skimp on the Inflation Benefit, just to get a low premium.  There are better ways to save on your long-term care insurance.  Skimping on the Inflation Benefit is probably not the best way.

Click HERE to learn more about the single biggest mistake made when choosing the Inflation Benefit.


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.