Benefit Choices of Comprehensive Long Term Care Insurance

2. Total Benefit Amount

The Total Benefit Amount is calculated by choosing a certain number of years to receive benefits. When you select a benefit period, it is expressed in years, ranging anywhere from one year to unlimited years (lifetime coverage). The benefit period is multiplied by the monthly benefit to determine a lifetime maximum, or pool of money to pay for your care. This is your Total Benefit Amount.

For example, if you purchased a three-year benefit period with a monthly benefit of $3,000, this would give you a pool of money (lifetime maximum) of $108,000 (36 months X $3,000). If you were to only to claim expenses of $1,500 per month, then the policy would actually last for 6 years.

The more assets you have, the shorter the benefit length you may need.

If you have a family history of Alzheimer's or simply longevity, you may want to consider a larger pool of money or even unlimited benefits. Alzheimer's patients have been known to require care for more than 20 years.