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What is the “Daily Benefit”?

The Daily Benefit is the amount of money your long-term care insurance can pay for each day that you receive qualified care.

The Daily Benefit is sometimes referred to as the “Starting Daily Benefit” or the “Original Daily Benefit” because your Daily Benefit will grow each year according to whichever Inflation Benefit you choose for your long-term care policy.

You choose how much you want your Starting Daily Benefit to be.  Most long-term care policies have many choices for the Starting Daily Benefit.  You can choose a Starting Daily Benefit as low as $50 per day to as high as $500 per day.  The choices for the Daily Benefit are usually offered in $10 increments.  The higher your Starting Daily Benefit, the higher the premium.

With some policies the Daily Benefit is referred to as a Monthly Benefit.  For example, a policy with a $200 Daily Benefit is similar to a $6,000 Monthly Benefit. 
 

Next: Watch out for this “gotcha” when choosing your Daily Benefit!    
 

© Scott A. Olson, 2010

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