All policies covering long term care services place certain limits on benefits and may exclude certain benefits completely. In choosing a policy that will best meet your own personal needs, it is important to understand the limitations and exclusions which are contained in these policies. The maximum policy benefit is the period of time or dollar amount limit for which long term care benefits will be paid under the policy. Insurance policies covering long term care services contain maximums of from one to seven years, or a dollar amount limit which is calculated by multiplying the number of years of benefits chosen, times 365 days, times the daily benefit amount chosen. Once the benefit limit or time limit is reached under these policies, no other benefits will be paid.
Some insurance policies covering long term care services also offer a lifetime benefit option.
It is important to note that in some long term care policies the maximum policy benefit is not the same for all benefits listed in the policy. The deductible or waiting period is the number of days you must be in a nursing facility or the number of days of home health care you must receive before long term care benefits will be paid under the policy. During the deductible or waiting period you will have to privately pay for the care you receive. A new deductible or waiting period may be imposed for each period of care. Shorter deductibles or waiting periods tend to increase the cost of coverage.