If you're considering purchasing long-term care insurance, there are certain aspects of the process that you should be familiar with. One of these aspects is the concept of daily and monthly benefit. The daily or monthly benefit of long-term care insurance policy can greatly determine which policy you obtain. However, in order to choose the right daily and monthly benefit policy you will need to understand a few aspects of the cost analysis and what determines daily and monthly benefits of the policies.
Every long-term care program or facility has its daily costs. These costs include the medical treatment, prescriptions, and anything that deals with the help care of you or the patient is covered under long-term care insurance plan. The daily benefits can differ greatly depending on the long-term care needs. For example, a patient requiring long-term care for cancer will face much different daily costs than a patient who has HIV or AIDS. Depending on the type of long-term care that you anticipate, you will need to know ahead of time what the daily amount of coverage required would be. Is that estimated daily amount that will determine the daily benefits policy that you will need for long-term care.
Daily benefits, connected to long-term care policies, refer to the maximum amount that the company providing your insurance will cover or the maximum amount they will pay for your care during a 24-hour daily period. The policies are very different depending on the amount of benefit you choose. You may choose as little as $50 per day or as much as 500 or more day. This depends on your state, and as stated several times previously, on the illness that you have. You will have two forms of daily benefits. You will have the reimbursement policy which allows for the amount that was not used on a given day to be rolled over to the following day. This is the most common form of long-term care insurance and daily benefit policy. The indemnity policy pays the entire daily or monthly benefits and does not roll over.
Monthly benefits are generally the same as daily benefits. The main difference between a policy that allows for daily benefits versus one allows for monthly benefits is in the time frame. The same rules and guidelines occur. If you choose to purchase, for example, a $2000 a month benefit long-term care insurance policy plan then your policy will pay out $2000 a month. If for example your policy is a monthly benefits reimbursement policy, and your costs were $1500 for that month, then $500 rollover to the next month. However, if you choose an indemnity policy then the $2000 would be paid with no rollover.
The type of policy you choose is completely up to you and determined based on your needs and your anticipated needs. Though it goes without saying that obtaining the most amount of daily coverage or monthly coverage is best, there are budget coverage’s that will still help in the need of long-term care. If you are uncertain of which type of policy you need, then contact us today we will be glad to help you with determining monthly, daily, or ongoing benefit.