I'm seeing conflicting information online about this. On their insurance company's website it says "The benefit period is the period of time used to calculate the lifetime payment maximum. Your coverage is based on this lifetime payment maximum, not a certain period of time."
I'm wondering if they don't use the max amount allowable each month, can they make their funds last longer than five years?
You can confirm this by reading the policy "evidence of coverage" and finding the total coverage amount. There will likely be a list of definitions that spells out how the total coverage amount is adjusted for inflation and how it is reduced for claims paid. Mine also has a page for each category of benefit that spells out "When will benefits end?" and states
"This benefit will be paid as long as:
the Conditions for Receiving Benefits are met; and
the Total Coverage Amount has not been reached.
(The Total Coverage Amount is shown in the Schedule of Benefits.)"
If they are not yet receiving benefits and have inflation protection, they should receive an annual "schedule of benefits" listing the updated total coverage amount and the maximum for daily or monthly coverage.
If they are on claim, the "explanation of benefits" should have a summary showing the payment for the current period, the total amount of plan payments, and the lifetime coverage remaining.
These documents should be available through an online portal once an account has been set up.
If it was a life insurance policy with a long term care rider, there would be such a benefit, but unlikely to pay much after five years of care.
You are right, though, asking them directly would give you an answer for her specific situation.
https://www.ltcnews.com/resources/faq/what-is-a-benefit-period-on-a-ltc-insurance-policy
The amount of money can be thought of as a checking account.
You should call the insurance company customer service line and have them walk you through it.
Or post this question on www.bogleheads.org; there are a couple of LTCi experts there.