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Benefit Period

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Benefit Period
The time during which one receives payments from an insurance policy or government program. For example, the benefit period for a person receiving Medicare begins when he/she is admitted to inpatient care and ends 60 days following discharge. The benefit period may be used to help determine the amount and type of benefits one receives.


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If you own a long-term-care insurance policy with lifetime coverage and are facing a premium increase, reducing the benefit period to three or five years could result in substantial savings on the premium, says Burns.
Among other findings, the study found that a three-year benefit period could knock as much as 54 percent off the cost of a lifetime benefit period; about 13.
Consider that a 35-year-old claimant with a $5,000 per month policy and a benefit period to age 65 represents a potential total liability of nearly $2 million.
 
 
 
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