The younger individual pays less than an older person. Length of the benefit payment and daily payment amounts represent the most expensive features in long-term care insurance. Waiver of premium, ancillary benefits such as home health and the inflation feature will also increase the cost though not as severely. Obviously, the higher the desired daily benefit, the more costly the insurance. This means that the insurance company will pay its daily benefit for up to the number of years the individual chooses for any period of confinement.
Some policies provide benefits for the lifetime of the insured.
This term applies to the number of days the individual must be in a nursing home before the Long Term Care insurance product will begin paying its benefits. LTC plans offer many different elimination and waiting periods to choose from. The elimination period amounts to the same as a deductible and must be met before the plan will pay. This is one of the ways companies try to control levels of risk. Most companies ask detailed health questions before deciding to insure the applicant.