Traditional LTCi

A traditional long-term care insurance policy is a stand-alone policy that provides a range of benefits selected at the time of the policy purchase.  These benefits include...

  1. Benefit Amount - Can be a daily benefit or a monthly benefit amount.
  2. Benefit Period - Depending on the product and carrier, you can select a number of years the policy will pay benefits.
  3. Inflation Protection - 3% Compound, 5% Simple, or 5% Compound are some of the options available to help the policy keep up with increases in costs.
  4. Elimination (or Waiting) Period - The amount of time after going on claim before the policy starts paying benefits, typically 90 days.

Traditional LTC policies are custom-tailored to suit an individual client's needs.  Premiums are paid on a monthly, quarterly, semi annual, or annual basis.

Similar to your auto insurance, homeowners insurance, and health insurance, Traditional LTC policies have no cash value.  And as with auto or homeowners insurance, if you do not go on claim, you will not receive any benefits.  With Traditional LTC, these means your pool of money remains intact until needed.

Inflation Protection is one of the main reasons for choosing a Traditional LTC product over some of the other available solutions.  Since the policy is able to be customized, it is possible to design the LTC solution to account for not only current needs but also account for future inflation in cost of care and cost of living.

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