LTC Benefits: Daily Limits & the Pool of Money

Benefits pay per day as a fixed indemnity (full daily amount regardless of cost) or reimbursement (actual cost up to the limit; home care often capped at 50–80% of the facility rate). Benefit periods: 1 year to lifetime (3 years popular ≈ average nursing stay). The pool of money: total benefit = daily max × period days — cheaper care makes the pool last LONGER. Elimination period = the deductible in days, usually satisfied once.

$200/day × 730 days = a $146,000 bucket; spend $125/day at home and it lasts 3.2 years.