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- Five features matter most: benefit amount, benefit period, elimination period, inflation protection, and benefit triggers.
- Compare real numbers to local costs. A $150 per day benefit means different coverage in different ZIP codes.
- Read the fine print. Wording on triggers and exclusions determines real-world claims outcomes.
- Benefit amount: The dollar limit the policy pays per day (for example, $150 per day). Example: If home care costs $25 per hour and you need 4 hours per day, the benefit covers that.
- Benefit period: How long benefits pay out (for example, 3 years or lifetime). Example: 3 years at $150 per day equals $164,250 total.
- Elimination period: The number of days you wait before benefits start (for example, 90 days). Example: You pay out of pocket for the first 90 days.
- Inflation protection: Automatic increases to keep pace with rising costs. Compound 3% is a common option.
- Benefit triggers: The criteria that start benefits. This is usually the inability to perform 2 to 3 activities of daily living (ADLs) or severe cognitive impairment.
- Policy A (Budget): $100 per day; 3-year benefit period; 90-day elimination period; no inflation protection.
- Policy B (Balanced): $150 per day; 5-year benefit period; 60-day elimination period; 3% compound inflation protection.
- Policy C (Premium): $200 per day; lifetime benefit period; 30-day elimination period; 5% compound inflation protection.
- How do you define inability to perform activities of daily living (ADLs)?
- Who performs the assessment and what documentation is required?
- What inflation options are available and how much do they add to premiums?
- Can you show me a 10-year and 20-year claim illustration based on my age?
