---
title: How Much Will Payouts Be?
description: As with all insurance, the payouts you receive are a reflection of the coverage you choose. Bear with us here; it's a bit complicated.
authors:
  - name: timestaff
    url: https://money.com/author/timestaff/
    articles: 459
    covers:
      - Insurance
      - Banking
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    former_staff: true
published: '2014-05-30T17:45:33.000Z'
modified: '2014-05-30T17:45:33.000Z'
section: Insurance
tags:
  - health
  - Health Care
  - Insurance
  - insurance payouts
  - long term care insurance
  - LTC
  - Payouts
  - Retirement
  - retirement planning
canonical: https://money.com/collection-post/how-much-will-long-term-care-insurance-payouts-be/
type: Article
source: structured-blocks
---

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![How Much Will Payouts Be?](https://money.com/img/logo-social.png)

As with all insurance, the payouts you receive are a reflection of the coverage you choose. Bear with us here; it's a bit complicated.

When shopping for insurance, you - along with your LTC insurance agent - typically start by figuring out the daily cost of nursing-home care today. Next, you need to decide how many years of that coverage you would like. The bigger the number, the more expensive your policy. As a rule of thumb, the average amount of time spent in a nursing home (among folks who need that type of care) is about three years.

Let's say you want to plan for care at $210 a day - the current national average - and you want the coverage to last for four years. That's $210 multiplied by 1,440 days, which equals $302,400. So, in the jargon of LTC, you would choose a policy with a lifetime benefit of $302,400.

That doesn't mean you will be limited to drawing $210 a day for four years. Most plans just let you draw on the lifetime benefit: You can draw it down over 10 years or 10 months. That's your decision. All the company cares about is that your total lifetime benefit will not exceed that $302,400.

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