Can anyone help me understand this?

[revacyrus]

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?

[AFFA]

In Long Term Care Policy the benefits will be listed for total dollar amount of policy over the specified period. In case of Stated Period Policy the contract will pay only upto the specified number of years, even if you use less benefits per day. In Long Term Care Policy the company generally will send you one check every month with the maximum allowable daily allowance once you have become eligible for daily allowance. In a Pool of Money Policy the benefits can be extended over a number of years. This is possible if you do not draw the maximum daily amount.

AFF

Thx--i was just googling this too.

[katie]

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.

[revacyrus]

Thanks for replying to my post.