Benefit Options

Policy riders allow for customization of a policy. When purchasing LTCI, you are able to select from a variety of riders, or add-ons. Each rider available is at an additional cost, however, many are worth the consideration.

Shared Benefits

With shared benefits, couples are able to share a spouse’s benefits if one spouse expended all of their benefits. With this rider, couples are able to double the benefits available to one spouse. Many people overlook shared benefits because of the increased premium rates, but this approach may be less expensive than purchasing additional years of coverage for both spouses.

Inflation Protection

This rider increases your daily benefit amount annually. It could double your benefits in a span of 15-20 years. Inflation protection can be helpful as it allows your policy to be at pace with the increasing costs of healthcare services. There are two types of inflation riders: simple and compounded.

• A 5% simple inflation rider will increase a $200 daily benefit by $10 each year for the life of the policy. For someone who is 55 years old today, this benefit will increase to $450 per day at age 80.

A $100,000 LTCI policy with simple interest will increase to only $150,000 in 10 years, $200,000 in 20 years, and $250,000 in 30 years.

• A 5% compounded inflation rider is interest on interest. For someone 55 years old today, a $200 per day benefit will increase to $677 per day benefit at age 80.

A $100,000 LTCI policy with 5% compound inflation will increase to $162,889 in 10 years, $235,330 in 20 years, and $432,194 in 30 years.

When considering a historical 4% inflation:

♦ In-Home Care: $57,200 per year today will grow to $158,585 per year in 25 years.

♦ Assisted Living: $62,964 per year today will grow to $174,566 per year in 25 years.

♦  Nursing Home: $134,320 per year for today will grow to cost $372,398 per year in 25 years.