Components of Long Term Care Policies
Checking out the insurance market, you will find various long term care policies that come in different annual premium rates. Some premiums are smaller than others. Wondering why? Read on and find out.
Your choice of long term care insurance (LTCI) policy will either support you financially or push you into the financial pit. For instance, one of the provisions of the policy which you signed is that you have to be unable to walk before you can receive your benefits. You did not notice, however, the small print at the bottom of your policy which stipulates you can only receive your insurance benefits if long-distance walking is required in your job.
Ten years from the time that you purchased your LTCI policy, you figure in an accident which had cost you your leg. When you attempted to claim your benefits, your insurer tells you that as a librarian for 20 years your work history does not show that you did a lot of walking in your profession, and thus it won’t pay you anything.
After all those years of paying your annual premiums religiously, you won’t get a single penny because you did not meet the requirement of your policy which was stipulated in fine print.
Avoid relying on the words of an LTCI representative. Make it a habit to read because selling insurance is party charitable work and most of the time business. Once you have been presented with your LTCI policy read it 10 times, review it 10 times and then avail of the company’s free-look period so that you will know if the policy is right for you or not.
Types of Long Term Care Policies
Another reason that you should read your LTCI policy carefully is to ensure you understand it and go with the manner that you will be receiving your benefits.
For instance, an indemnity LTCI policy will pay its policyholders the exact amount of their maximum daily, weekly or monthly benefit regardless of how much they have actually spent on care.
For example, your policy’s maximum monthly benefit is $5,000 and even if the total amount of your accumulated monthly expenses for home care is $3,040 you will still receive$5,000 from your insurer. How and where you spend it is up to you.
Now suppose you end up acquiring $5,500 for home care, you will have to settle the remaining $500 of the cost from out-of-pocket since your insurer will only pay you $5,000, as this is the limit of your maximum benefit.
Another type of LTCI policy is known as the reimbursement. With this type of policy, a policyholder will receive from his insurer the exact amount of his total expenses in a nursing home, assisted living facility, hospice care, etc.
Unlike the indemnity policy, reimbursement long term care policies require a policyholder to present official nursing home or hospital bills to his insurer before he can reimburse the total amount of LTC expenses which he has incurred. Simply put, if your maximum daily benefit is $200 and you have incurred $125 for a day’s stay in a nursing home, your policy will only pay your care provider $125 and keep the remaining $75 in your pool of benefits.
By means of long term care insurance quotes, you can plan your future and protect your family. CompleteLongTermCare.com wants you to make the right decision early in your life by giving you free long term care quotes and substantial discounts.
Processing your request, Please wait....
