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.