The benefit period for your policy will vary for anywhere between 2 years and unlimited lifetime coverage depending on the level of plan you purchase. The benefit period means the amount of time your policy will pay for your care. Applicants should keep in mind that while premiums will be paid until the policy holder needs care, which could be for many years, the amount paid for care will only be for the amount of time selected when choosing the benefit period on the policy.
The best way to determine how long you will need benefits is by reviewing your medical history along with your family medical history. If you or your family have a history of chronic illness then a longer benefit period would be worthwhile. The following information may also help when choosing a benefit period.
- Average length of stay in a nursing home is about 2.8 years.
- Average length of stay in a nursing home for individuals with Alzheimer’s is about 5.5 years.
- Average care giving time at home is about 4.1 years.
Insurance plans will also either have a daily, weekly or monthly benefit maximum. In order to make sure your plan will cover your costs for that period of time, you will need to be aware of the average cost in your local area for that period of time. If you plan to retire elsewhere, you will need to base your averages on that area.
Lastly, you should know your elimination period. This is the length of time you must wait before your plan will begin to pay. The elimination period will vary between plans and will also affect your premium amount. Typically the shorter the elimination period, the higher the premium cost.
