Using this figure and the chart above, you can wisely determine how long of an elimination period and how much of a daily benefit your needs require for your long term care insurance policy. The benefit period is yet another decision you must make when designing your LTC policy. The benefit period is the maximum amount of time that the insurer will provide the daily benefit. By choosing a shorter benefit period, you are lowering the policy premium. It's usually best to choose as long a benefit period as you can realistically afford.
Most insurers use what is known as an ADL system.
ADL is short for Activities of Daily Living. A few examples of ADL's are bathing, dressing, eating, and toileting. Insurers that use this system will pay benefits after it is medically documented that the insured cannot perform a predetermined number of ADL's. Every insurance company may have a different set of ADL's. Each policy also requires assistance with a specific number of ADL's prior to benefits being paid.