Pool of money is the total benefit amount available under many long-term care and hybrid life/LTC policies, calculated by multiplying the maximum monthly or daily benefit by the benefit period. Rather than paying for a fixed duration, the policy effectively offers a bucket of dollars that can be used faster or slower depending on actual claim amounts. If monthly claims are below the maximum, benefits can stretch longer than the nominal benefit period; if they are higher, the pool may be depleted sooner, subject to contract caps and provisions.

Advisors explain the pool-of-money concept when helping clients compare LTC benefit structures, showing how different benefit levels and periods translate into total available dollars. They model scenarios where clients use less than the maximum benefit and preserve pool value, versus high-cost care that drains the pool quickly. Claims departments track remaining pool balances as benefits are paid. Understanding the pool of money helps advisors shift conversations from abstract time periods to concrete dollars available for care planning.