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Long term care insurance policies contain complex language and specific terms that can be difficult to understand. Knowing the key terms helps policyholders make informed decisions and understand their coverage options.
Understanding Policy Coverage
Long term care insurance typically covers services such as nursing home care, assisted living, and home health care. It is important to review what types of care are included and any limitations or exclusions that may apply.
Key Terms to Know
- Elimination Period: The waiting period before benefits begin after a claim is filed.
- Benefit Period: The maximum length of time the policy will pay benefits.
- Daily Benefit: The maximum amount the policy will pay per day for care services.
- Coverage Limit: The total amount the policy will pay over the lifetime or within a specified period.
- Inflation Protection: An option to increase benefits over time to keep pace with rising costs.
Important Considerations
When choosing a policy, consider the elimination period, benefit period, and daily benefit amount. Also, review the policy’s inflation protection options to ensure coverage keeps pace with future care costs.