Be in Control with a Disability Model Indemnity Plan
Old age, sickness, and mental deterioration can easily take away the self-esteem of any individual who used to be at the top of his career and whom people venerated. However, this can be prevented through a disability model indemnity plan.
It’s human nature to want to be in control of your life. To be in control of your life, though, you have to be financially equipped because if you are going to depend on others for your needs you have no choice but to make do with what they can afford to give you. Now you wouldn’t want this, would you?
If that’s the case then you have to plan your long term care (LTC) carefully because the rising cost of care in the country can deplete your assets faster than you’ve earned it. Now before raising an eyebrow and saying you’re too fit to need LTC someday, you ought to know that the late Christopher Reeves had no inkling that he will require nine years of in-home care when he was still an active equestrian. As a matter of fact, nobody figured him in such situation because he was the epitome of strength and power having owned the Superman title for so many years.
Despite his success and wealth, the actor still wound up spending all of his assets to cover his LTC expenses and he eventually ended up accepting help from his kind-hearted friends before his death.
If famous people like the late Superman actor can be subjected to expensive LTC, what more average Americans?
Disability Model Indemnity Plan
Insurance companies that sell LTCI policies offer the public a wide range of options for their LTC. They may want to consider a reimbursement policy which will reimburse them of their total expenses on care. There’s also the indemnity policy which pays the insured person his maximum daily or monthly benefit amount regardless of his actual cost on care.
Under the indemnity LTCI policy, there’s the much coveted disability model or CASH policy that pays the insured person his exact maximum daily or monthly benefit amount whether he acquired care or not.
People who own the CASH policy are not required to avail care from a licensed caregiver or skilled nurse. They can choose to receive care from their loved ones and pay them for their kindness.
CASH polices simply require policyholders to require assistance with two of their six activities of daily living (ADL) which are eating, bathing, dressing, toileting, transferring, and continence due to functional limitations or mental impairment.
Since it does not bear stringent requirements, a CASH policy is the most expensive type of LTCI policy but it is also the one that guarantees complete independence. Owners of this LTCI plan, however, have to responsibly allot their benefits because the moment that they run short of it, they cannot hold their insurer liable.
To learn more about the advantages of a disability model indemnity plan, contact your licensed LTCI broker today.
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