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The SCB has thousands of corporate and individual members. These include senior citizens, nurses, home-health agencies and aides, nursing homes, assisted living facilities, medical supply companies and many more. :: join now :: learn more :: | |
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The Importance of Long Term CareLong Term Care Insurance is not as complicated as many people think. Most policies are designed to pay a daily benefit to the insured when he or she receives covered services. The majority of tax qualified long term care policies on the market today consist of four key elements:
- Term. This refers to how long the insurance company will pay once you begin receiving covered care. The most popular options are "unlimited" (lifetime) planes and three year plans. Some policies express the term as a dollar value rather than a number of years.
- Daily Benefit. This refers to how much the insurance company will pay on a daily basis. The most popular option in some parts of the country is $120 per day ($3,600 per month). In other parts of the country, such as New England and California, the averages are significantly higher.
- Inflation Protection. Because the cost of long term care is continually increasing, it is very important for policy benefits to grow over time. Most policies offer to different inflation protection options: 5% simple per year and 5% compound increase per year. Some policies also offer a guaranteed purchase option, where the insured is given the right to raise the policy's benefits in the future regardless of his or her health.
- Elimination Period. This refers to how soon the insurance company will start paying for your care. The most common elimination (waiting) periods are 0 days, 20 days, 60 days, and 100 days. The longer you are willing to pay for your own care, the lower your premium will be.
Example: With a 60 day elimination period, you would be responsible for the first 60 days of care.
We hope this article has assisted in making an informed decision about Long Term Care. Stay tuned for monthly articles on this topic.
For more information, contact Great American Life Insurance Company at: 1-800-557-5721.view pdf visit www.galic.com/ltc.asp
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