Unlike many traditional health insurance plans that pay for services based on a percentage of the total charge, many long term care insurance plans pay a flat daily benefit. The daily benefit is the amount of money the insurance company has agreed to pay per day for you to receive long term care services. Insurance companies usually offer a range of daily benefit amounts for you to choose from starting around $50 and going as high as $250. Your premiums will be lower or higher according to the daily benefit you select. Not all companies offer this choice. Some companies only offer policies that pay your actual costs. A good way to decide which daily benefit to select is to find out what the current cost of care is in your area and choose your daily benefit accordingly. You can do this by calling nursing homes and independent living facilities in your area. If you would prefer not to do this, consider this: According to the Health Insurance Association of America, annual nursing home costs is greater than $40,000. This would average out to $112 minimum per day.