Long Term Care
Sample Long-Term Care Policies
Premiums vary based on how old you are when you purchase the policy, what benefit period you select (how many years of coverage the policy covers), what elimination period you select (how long you receive care before the policy starts paying) and your health status when you purchase the policy (preexisting conditions, smoker, etc.).
The premiums on the sample charts are based on the best rating class available. For each policy, rates are shown for persons purchasing at ages 45, 55, 65 and 75 (issue ages). Two sets of rates are shown for each policy. The first set of rates is for a short benefit period and a long elimination period (HEP); for most companies a two-year benefit period was used with a 90- or 100-day elimination period. The second set of rates represents a long benefit period and a short elimination period (LEP); for most companies a lifetime/unlimited benefit period was used with a 0- or 20-day elimination period.
A compound benefit increase rider and a nonforfeiture rider must be offered with all long-term care policies. Adding either or both of these riders will increase the premiums charged. Long-term care policies also may offer other riders for an additional premium charge. There may also be discounts available if both you and your spouse purchase policies.
The following charts are examples of long-term care policies that were being sold as of June 1, 2007. The policies are divided into two categories:
The premium rates shown are based on a $150 daily nursing home benefit. Typically, home health care daily benefit will be stated as a percentage of the nursing home daily benefit. The charts show the premiums for the highest percentage of home health care offered by the company for the listed policy form number.
