Advantages of a Reimbursement Policy
It is not favored by many but then again it sells like hotcakes because a reimbursement long term care insurance (LTCI) policy is definitely affordable compared to other types of LTCI.
Whatever amount of money that you fork over to a nursing home, hospital or assisted living facility, your reimbursement policy shall pay back to you as long as it is less than or equivalent to the total amount of your insurance benefits. Yes, this type of policy will only be paying you the exact amount of your expenses on care whether this is on a daily, weekly or monthly basis.
Should your total expenses exceed the maximum benefit amount of your insurance as stipulated on your policy, you will have to pay for the excess amount out- of-pocket. Others do not like this process but personally, I find it very helpful.
You see, nobody will ever know how long he or she will need care. In fact, I know of people who have secured an LTCI policy with a good three-year benefit period only to extend their stay in a nursing home to seven years. Unfortunately, they have to shoulder their present nursing home bills as their coverage period has lapsed already.
Through a reimbursement LTCI policy your insurer can extend your LTC coverage depending on the amount of money that is left in your pool of benefits. For example, your policy stipulates a maximum daily benefit amount of $250 but your daily expenses in a nursing home only amount to $220, so your insurer puts back $30 in your pool of benefits every day.
By the end of your policy’s three-year benefit period you’ll still have approximately $32,850 in your pool of benefits, thanks to the $30 which your insurer puts away every single day from the time that you claimed your insurance benefits.
Where to Buy Reimbursement Long Term Care Insurance
Although the reimbursement LTCI policy is a good insurance product and buying one will definitely benefit you and your family down the road, where you buy it definitely matters.
Screen companies that are marketing and selling LTCI policies to be certain that all of them are capable of paying claims. There have been many big insurance companies that eventually closed down so check the financial strength of each company.
To make company background checking a lot easier, visit the websites of insurance ratings agencies such as A.M. Best Company, Standard & Poor’s, and Moody’s Investors Service among others. A++ or just A ratings mean that a company is financially sound and thus capable of paying out claims.
Apart from checking the ratings that a company has received, find out what people have to say about the company that you are eyeing by visiting forum sites relevant to LTC, or reading blogs that are related to this subject.
People who have been duped would usually broadcast what has been done to them. Through in-depth research, find out which companies have been frequently associated with swindling then stay away from them.
Buying a reimbursement long term care insurance policy is not as simple as making a purchase in a shoe store because a pair of shoes can be returned to the store owner if it has defects. An LTCI policy which you’ve signed without reading rigorously can no longer be amended and thus you’ll have to live with something that won’t be of any use to you.
You can request for long term care quotes through our website. Find out more about all the important details that your long term care insurance quotes should include.
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