Some insurance companies offer LTC policies based on a daily benefit amount. Mutual of Omaha’s policies are based on a monthly benefit.

A daily benefit has a per day maximum which means your clients are reimbursed up to a set amount for each day. If the cost of the service is over this amount your client will have to pay the balance.

With a monthly benefit, your clients are reimbursed for the actual costs of the services received each day up to the maximum monthly benefit – regardless of daily costs that may vary throughout the month. While both policies pay $3,000 per month in benefits, how the benefits are paid is different Here is how it works:

Cost of Services	John’s Policy $100 Daily Benefit x 30 Monthly		Sarah’s Policy $3,000 Monthly Benefit
Monday $100	Policy reimbursed $100	Out-of-Pocket Cost $0	Policy reimbursed $100	Out-of-Pocket Cost $0
Wednesday $150	Policy reimbursed $100	Out-of-Pocket Cost $50	Policy reimbursed $150	Out-of-Pocket Cost $0
Friday $250	Policy reimbursed $100	Out-of-Pocket Cost $150	Policy reimbursed $250	Out-of-Pocket Cost $0
Monthly Totals (based on services received three days per week for four weeks)	Total reimbursed $1,200	Total Out-of-Pocket Cost $80	Total reimbursed $2,000	Total Out-of-Pocket Cost $0

A monthly benefit allows your clients to get the maximum benefits from their policy and the ability to pay for different types of LTC services if needed.

To learn more about the difference between daily and monthly benefits, click here.
 

The Advantage of a Monthly LTCi Benefit
 

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