Can Anyone Help Me Understand This?

julietegecy

New Member
8
Could anyone explain me what is difference between Stated Period Policy and Pool of Money in Long Term Care Insurance? Which one is better and what is it benefit?​
 
Pool of money traditionally applies to joint policies when there is a defined benefit period--say 5 years. It would allow you to access more money in early years, but could cause the insured to run out of coverage (money) sooner than the original benefit period.
 
I was reading about Long Term Insurance Care and came across this site. I am copy - pasting lines from this article. I hope it helps you. I found it on
www dot longermcareinsuranceplanners dot net​

Your policy will list a total dollar amount of benefit for over the stated term. In a stated period policy, your contract will only pay up to the number of years you selected no matter that you used less than the maximum benefits per day. A $100 per day policy for 5 years would end at 5 years even if the policy only paid $50 per day.

A pool of money policy is superior to the stated period policy. A pool of money policy will let you stretch the benefits years if you do not take out the maximum daily amount.
This option is usually referred to as the ‘maximum lifetime benefit amount’.
Indemnity Claims Payment – Under this option, the long term care insurance company will send you a check once a month for the maximum allowable daily, once you qualify for benefits. You don’t have to file claims for every expense.​
 
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BNTRS, thanks for taking time out and explaining the Pool of Money to me

tessflores, thanks for the link and explaining these terms. Could you please tell where exactly on site you found this information?
 
There are no "stated period" policies available for sale today.
The last one I remember was about 10 years ago.

If someone bought a "stated period" policy 10 years ago, there's no point in them switching to something else now, because the new premium for a new policy would be MUCH higher.

Essentially, every policy available today is a "pool of money" policy, whether it is shared between a couple or if it is just an individual policy.

The way to calculate the "pool of money" is to multiply the Daily Benefit x 365 x the number of years in the Benefit Period.

e.g. a policy with a $200 Daily Benefit and a 3 year Benefit Period has a starting "pool of money" of $219,000 ($200 x 365 x 3 = $219,000).

As the Daily Benefit increases each year according to the Inflation Benefit, so does the "pool of money".

The better way to describe the "pool of money" is "Maximum Lifetime Benefit".

You can learn more about the basic features in a LTCi policy by watching the 2-minute videos at the following webpage:

Learn about LTCi
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It would allow you to access more money in early years, but could cause the insured to run out of coverage (money) sooner than the original benefit period.

I understand what you mean by that, but it could be misunderstood.

I think what BNTRS is trying to say is that with a shared policy (sometimes called a "joint policy") with some companies one spouse can use up all of the benefits in the policy. That is true. Also, if both spouses need care simultaneously, and they are sharing 6 years of benefits, then the policy could be depleted within 3 years.
 
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Hi julietegecy

You can find this point on
www dot longtermcareinsuranceplanners dot net site, click on "LTC Policy Benefits" (on extreme right hand side, first topic under "About the Policy"). It discusses all about it.​

or you can check the URL​

www [dot] longtermcareinsuranceplanners [dot] net [/] benefits [dot] html​
 
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