Jonas (age 50) is trying to decide between a long-term care policy with a 3-year benefit period (Policy A) and another with a $200,000 lifetime benefit limit (Policy B). Both policies have identical elimination periods and premiums as well as 80% monthly benefit limits. Which policy should Jonas pick if he believes that long-term care will cost him $80,000 a year?

• A :

  Policy A; it will provide $8,000 in additional coverage.

• B :

  There is no difference between the anticipated policy benefits.

• C :

  While Policy B will pay a higher anticipated benefit, he should choose Policy A to protect himself from inflation.

• D :

  Policy B; it will provide $8,000 in additional coverage.