Why Indemnity Long Term Care Insurance is Preferable
Who wouldn’t want an indemnity long term care insurance (LTCI) policy when it basically gives an individual full control over his insurance benefits, which he invested so much money into as he paid his annual premiums religiously.
Ask long term care (LTC) specialists some effective tips on buying an LTCI policy and they will advise you to consider an indemnity rider. With this type of policy, you will receive your maximum daily benefit regardless of your actual LTC expenses.
The nature of indemnity policies is totally different from reimbursement long term care plan. Apart from paying only the exact amount of expenses which you have incurred from home care or from an institutional or community-based LTC facility, a reimbursement policy will even require you to submit official receipts from the facility which provided you care before it pays back your expenses.
An indemnity LTCI policy is more lenient. You don’t have to keep a compilation of nursing home or hospital bills and submit them afterwards to your insurer so you can receive your daily, weekly or monthly benefits.
The indemnity LTCI has two types and one of which is the Disability Model Indemnity Plan which is popularly known as the CASH plan. With this type of LTCI you are entitled to receive your policy’s maximum benefit in full whether you have received care from a licensed care provider or just from a family member.
The other type of indemnity policy is called Partial Indemnity Policy which entitles the policyholder to receive his policy’s maximum daily benefit even if he only receives an hour of care every day.
If the indemnity policy has any requirement at all, that would be assistance in two activities of daily living or cognitive disability. Since it gives you absolute freedom to spend your money however and wherever you want to, the CASH plan happens to be the most expensive type of LTCI policy.
Should You Get Indemnity Long Term Care Insurance?
If you have a predisposition to cancer, cardiovascular diseases, stroke, diabetes, and other chronic illnesses, an indemnity LTCI or the CASH plan is going to be ideal for you.
People who are expecting to go through the three stages of care from in-home care, intermediate nursing care to acute care are advised to secure themselves with an indemnity policy. Prolonged LTC equates with high costs and so it is going to be very convenient for you to receive your benefits in full.
Indemnity policyholders can invest their money in home modification to ensure their comfort and their independence in spite of their condition.
Since LTCI policies are unlike universal life insurance policies, as the sole beneficiary of the former is the policyholder and that’s you, perhaps you can deposit the rest of your cash benefits into your spouse’s bank account after having made certain that your healthcare needs will be fully covered.
Indemnity long term care insurance policies are, indeed, pricey but if you’re seriously after a long term care plan this should naturally involve your loved ones, especially if you are married and your kids are still young and depending on you . It’s not enough that you secure your family’s future with a life insurance and neglect your needs. Meanwhile, nothing can be more unfair than planning your own healthcare and leaving their future hanging in the air.
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