Designing Your Long-Term Care Plan

Last updated: October 12, 2015

Thinking Through Your Needs and a Policy

There are many variables to consider when you are designing a long-term care plan that not only suits your needs but also fits your budget. This section discusses the basic plan design elements that you will need to consider.

You will need to decide on several factors: 

1. The Elimination Period (period before benefits begin): typically ranging from 0 to 100 days

2. Length of the Benefit Period: ranging from “one year” to “lifetime”

3. Daily Benefit Amount: usually ranging from $50 to $250 per day

  • For example, you might select a plan that pays $70 per day, has benefits that begin after 30 days and has a benefit pay-out period of 3 years.

4. Tax qualified or nontax qualified

5. Where Care Is Received

6. Optional Provisions or Riders