A Quick Rundown of Long Term Care Insurance Policy Options
If an individual wishes to acquire his own LTC insurance plan in order to satisfy and receive all the possible LTC services that he might need in the future, he must also be fully aware and informed of the different long term care insurance policy options that are currently available and being offered in the country today.
Some residents are still doubtful as to what an LTC plan might give them especially because they are not convinced of the expensive monthly premiums that usually come with it. As a result, some of them choose to save up and use their savings and other assets to pay up the possible LTC services that they might need, without possibly knowing that they are taking a lot of risks with this move.
Based on some surveys, the monthly premiums of LTC insurance plans tend to increase by as much as ten to twelve percent for every year that the policy acquisition is delayed or postponed. This means that several years from now, the rates may be difficult, or even impossible to afford, especially by those who do not have enough financial resources to sustain the payment of the monthly premiums.
Because of this, it is necessary for an individual who is planning to acquire an LTC insurance plan to learn more about the different policy options that are available nowadays so that he can fully maximize and utilize all the benefits that he can get.
The first of the several long term care insurance policy options is known as the Reimbursement type. This is said to be the most common type and as its name imply, it reimburses the exact amount of the LTC services that a policyholder has incurred, regardless if his daily benefit amount is higher. Any excess amount will then be put in his trust fund, giving him the possibility of having longer coverage period.
The second type is the Indemnity option. It is much more expensive than the first type because it gives the policy owner the full amount of his insurance plan, even if he was not able to maximize his allowed benefit amount. This will give him the freedom to use the excess money to whatever way he wishes to.
Both Reimbursement and Indemnity type conform to the rule that no other amount of money will be given to the insured individual once he has maximized his benefit amount, and that any balance from thereon will then be shouldered by the person himself.
Lastly, the Partnership policy option is administered and run by the government and probably offers the cheapest monthly premiums as of the moment. It also provides two additional features that will give more advantage and benefits to its policyholders, making it more practical to acquire.
If ever a Partnership plan holder’s policy coverage already expired and he still needs additional LTC services, he may apply for Medicaid benefits given that he meets their requirements and other qualification standards.
To know more about the other pertinent details regarding the long term care insurance policy options, an individual may directly contact their insurance agent or check out the websites of some insurance companies that provide long term care quotes other important information that may help them decide which policy option to acquire.
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