Grounds to Choose Long Term Care Indemnity Policy
As the industry of consumer-directed health care continues to boom, more and more people are gaining control their care and coverage especially with a long term care indemnity policy. Consumers are seeing advantages with this “cash-based” policy and the numbers of plan buyers interested with it continues to soar. First-time buyers should ask themselves if this LTCI is right for them. To guide them in determining and selecting, here are the grounds to choose an indemnity-based plan.
Ground Number 1:
This policy and the other existing policies are related in many ways such as in qualification wherein an event that met the policy’s requirements is needed to be eligible to receive benefits. Both also have a certification period which will also determine the days the insured received care and then will pay only for those days. This means that qualifications are basically the same for most types of policies and that should not hinder one in choosing an indemnity LTC.
Ground Number 2:
This plan lets the insured be manage and direct. Not like in other policies, the benefit amount is allotted for medical or care expenses. With the cash-based plan, the insured can be in-charge of the maximum allowable daily benefit amount stated in the policy. He can choose however he prefers to use it such as spending it for incurred expenses or saving it up in the bank for future expenditures.
Ground Number 3:
Related to number 2, indemnity type coverage does not require the insured to file claims or submit receipts. This means lesser hassle specially in tracking proofs.
Ground Number 4:
It is a great way to prepare for future health challenges. People who consider this type of policy do not only think about of the difficulties of paying for long term care. They also think about their families who they’ll be leaving homeless, penniless and miserable if ever they will drain their financial sources just for health care. This plan can help them keep some of their money from the maximum benefit amount. As stated in ground number 2, one can choose to put the money in their savings.
Ground Number 5:
Some of our loved ones who are in need of care prefer to stay at home rather than receive care in nursing homes or assisted living facilities. In this case, a long term care indemnity policy is more applicable since as ground number 3 states, there would be no need to track medical bills and approved caregivers. Thus, leaving families and friends with lesser organization tasks and can now just concentrate in providing care.
Ground Number 6:
The term “maximum daily benefit amount” has been mentioned already. But what does this really mean. In the cash-based plan, regardless of how much the bill is, the insured can get the full amount. An example would be, if the daily benefit amount stated in the plan is $300, yet the cost for caregiver is only $150, the insured will still get the $300. While this advantage would be great if the cost of care is lower than the maximum amount, it is important to be reminded that this is not applicable when the cost of care is higher than the benefit amount. Such as in the case of, the facility bill is $350 while the daily benefit amount is only $300. The insured will have to shoulder the remaining $50 balance.
There are just some of the advantages of a long term care indemnity policy. Buyers should carefully weigh these and compare them with other options to see which LTC plan best suits their needs. Be sure to also research on the other types of insurance, and also scout on the top companies and providers to gather important information and long term care quotes that will serve as a guide in choosing a plan.
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