Face the Cost or Agree On Reimbursement?
Personally, I don’t see anything unlikable with reimbursement long term care insurance. Firstly, it is by far more affordable than the indemnity policy and secondly, it gives an individual the privilege to enjoy a personal auditor.
Although the indemnity long term care plan is ideal, the annual premium you have to deal with is just unreasonable. Besides, why would you want to get your daily, weekly or monthly policy benefits in full even if you have only spent a few bills on a home health aide?
I understand that having your money in your hands and being in full control of your long term care (LTC) expenses is comforting, but did you ever think of the possibility of running out of funds even before the first year of your benefit period has ended?
If you have been reading articles and reviews on indemnity LTCI, perhaps, you already know that many people want it because they can spend it however and whenever they want to. Their goal is not only to use it for their healthcare needs but mainly to fill their need to have money in their pockets at all times.
I would rather just have loose change in my pocket knowing that a bigger chunk of money has been set aside for my healthcare needs. Should I need intermediate or acute care someday, I wouldn’t worry where to get the money to fund my nursing home expenses.
At present, elderly people receiving in-home care spend roughly $36,480 annually for home health aide services. Most of them acquire homemaker services, too, so that’s an additional $34,560 on their yearly expenses.
Later, as their health condition worsens they would inevitably require skilled nursing care. The current daily rate of a private nursing home room is $219 which can be translated to $81,468 annually. If you’re going to spend two to three years in a nursing home, the total amount of money that you’re going to shell out is $244,404 and this is not yet inclusive of your personal needs.
Can you afford that?
Practical Thinkers Buy Reimbursement Long Term Care Insurance
Many would consider the reimbursement LTCI policy an unwise investment. Contrary to that, it is actually a very intelligent decision to buy this type of policy if you are thinking in terms of long term care.
Take this for instance. You purchase a comprehensive LTCI policy with a maximum daily benefit of $250 for a three-year benefit period. Ten years later, you figure in an accident which resulted in a bad leg injury so your doctor said you will need LTC.
You were eventually admitted into a nursing home where a skilled nurse assists you and monitors your condition day in and day out. This nursing home, which is just five kilometers away from your home, charges you with $213 for a day’s stay in a private room.
Upon presenting the official receipt of your nursing home expenses to your insurer it pays out $213 and keeps the remaining $37 in your pool of benefits which you can use in the future.
After two years in the nursing home, your doctor said you can continue receiving care at home. When you get home, you are surprised to find out that you still have so much left in your reimbursement long term care insurance policy’s pool of benefits because your insurer has diligently and responsibly put aside $37 every single day of your nursing home confinement
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