Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.


How much will payouts be?

As with all insurance, the payouts you receive are a reflection of the coverage you choose.

When shopping for insurance, you - along with your LTC insurance agent - typically start by figuring out the daily cost of nursing-home care today. Next, you need to decide how many years of that coverage you would like. The bigger the number, the more expensive your policy. As a rule of thumb, the average amount of time spent in a nursing home (among folks who need that type of care) is about three years.

Let's say you want to plan for care at $220 a day - the current national average - and you want the coverage to last for four years. That's $220 multiplied by 1,460 days, which equals $321,200. So, in the jargon of LTC, you would choose a policy with a lifetime benefit of $321,200.

That doesn't mean you will be limited to drawing $220 a day for four years. Most plans just let you draw on the lifetime benefit: You can draw it down over 10 years or 10 months. That's your decision. All the company cares about is that your total lifetime benefit will not exceed that $321,200.