Does Reimbursement Long Term Care Insurance Have Lapses?
Although the cheapest kind of insurance for long term care, reimbursement long term care insurance policies don’t have so many followers.
With this kind if long term care insurance (LTCI) policy, the policyholder will not be able to get his hands on his maximum daily or monthly benefit because the insurer will only reimburse to him the total amount of his long term care (LTC) expenses, which can be either lesser or equal to his policy benefits.
Policyholders of this type of LTCI feel like kids, as they don’t get to completely relish their benefits since they only receive a portion of it; others don’t even get to see or hold it at all as the insurer would give the payment directly to the long term care provider.
According to some unsatisfied policyholders of the reimbursement LTCI, purchasing it was synonymous with throwing away hard earned money. Apart from the fact that they don’t receive their total benefits, many complain that they don’t receive their benefits instantly since they still have to present hospital bills, medicine receipts, and other LTC related coupons to the insurer.
For example, after a three-day stay in a hospital due to high blood you submitted your bills to your insurer which totaled to $213. Your policy, on the other hand, stipulates that you have a total maximum daily benefit of $250. Upon submission of the hospital bills to your insurer, it only pays the exact amount of $213 while the remaining $37 was returned to your LTCI reserve.
Putting Reimbursement Long Term Care Insurance In A Good Light
It is very understandable why not many people like the reimbursement LTCI policy. Paying the annual premium for this policy was a big sacrifice for them even though majority of LTCI buyers would claim the premium is significantly lower than other policies.
However that being true, there is no denying the evidences pointing at the advantages of having a reimbursement LTCI policy. It may be frustrating to only get a portion of what you believe should be yours, but did you know that everything that your insurer puts back in your pool of benefits will be benefitted by none other than you.
For instance, your policy specifies a maximum benefit of $300,000 for a three-year coverage period. When a benefit trigger occurred and qualified you for LTC service, you found comfort in an assisted living facility which charges $2,898 a month.
Every month, your insurer pays $2,898 to the assisted living facility that you’re in despite having a total monthly benefit of $8,333. Then it puts back the remaining $5,435 in your policy’s pool of benefits. The remaining amount of your monthly benefit will be kept in the policyholder’s pool of benefits so that he can pull out something in the future should he need further care.
Just like the indemnity LTCI policy, the reimbursement insurance does not qualify one for Medicaid eligibility should his policy benefits be exhausted in no time. To qualify for Medicaid assistance after having used up the benefits of your reimbursement long term care insurance policy, you have to spend down your assets up to the federal health program’s asset limit.
We offer the cheapest and most reliable LTC insurance these days and that is reimbursement long term care insurance. Find out more about these long term care plans , cost data, additional long term care information and free long term care quotes when you visit our website.
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