Gotcha #1: Some long-term care insurance policies have different ways of determining the Daily Benefit depending upon the setting in which you are receiving care.
For example the:
- Nursing Home Daily Benefit may be $200,
- Assisted Living Facility Daily Benefit may be 70% of that (e.g. $140), and
- Home Healthcare Daily Benefit may be 50% of the Nursing Home Daily Benefit (e.g. $100).
Group long-term care policies are designed this way more often than individual long-term care policies.
If home healthcare is very important to you, when comparing policies make sure you compare how much each policy will pay for care you receive at home–don’t just look at the nursing home daily benefit.
Gotcha #2: The Daily Benefit you choose may not cover the full cost of your care
For example, if your care costs $250 per day, but your Daily Benefit is $200 per day, the policy would pay only $200. You would need to pay the other $50 from your own income and/or savings.
When choosing a Daily Benefit, do not assume that all your income will be able to go towards the cost of your care. If you receive care at home, you’ll still have most of your usual household expenses. If you’re married, your spouse may still need most of the household income to cover regular living expenses.
To see the cost of care services in your area, click the following link to access the most recent government survey:
http://longtermcare.gov/LTC/Main_Site/Tools/State_Costs.aspx
