Plan Wisely with a Reimbursement LTCI
To think that long term care insurance is only intended for the wealthy will damage yourself, your future and your loved ones’ future because this is a simple yet dangerous manifestation of irresponsibility. If the poorest of the poor can manage to see the silver lining via Medicaid, all the more that you should be positive that you’ll get by with a reimbursement long term care insurance policy.
Private insurance companies marketing long term care insurance (LTCI) offer various types of policies and one of these is the reimbursement LTCI policy. It is the most common type of LTCI as it is more affordable compared to other LTCI policies.
As long as long term care costs continue to soar, it would be wise to purchase a comprehensive LTCI policy as this will offset your costs on care. At present, elderly folks who are receiving care in a nursing home are forking out roughly $78,000 annually. According to nursing home personnel the average length of stay of an elderly resident in their facility is three years but there are some who even reach five years.
Guess you have that calculator beside you and you have probably estimated already that your total cost for a three-year stay in a nursing home would be $234,000. Wrong. Never leave inflation out of the picture because if you do you can never get around to planning effectively.
You see, the cost of care increases by the year so today’s LTC rates can possibly be doubled or tripled next year. By purchasing an LTCI policy with an inflation protection you can rest on the fact that your benefits will keep at pace with the rate of inflation.
Reimbursement Long Term Care Insurance
Individuals with a reimbursement policy can reimburse the exact amount of their LTC expenses up to their policy’s maximum benefit amount.
If you own this type of LTCI policy, you have to first submit to your insurer the bill which was issued to you by your care provider before you can claim your benefits. After having submitted the bill your insurer will reimburse you the exact amount of your expenses.
For example, your policy stipulates a maximum daily benefit of $275 but the total expenses that you’ve incurred in a nursing home only amounted to $209, therefore your will only receive the latter amount from your insurer. The remainder of your maximum daily benefit, which in this case is $66, shall be retained in your pool of benefits and you can use it in the future after having exhausted your insurance benefits.
Extended care is what people with this type of LTCI policy can enjoy since they rarely consume their maximum daily benefit. Simply put, they leave a bigger amount of money in their pool of benefits for future use.
Once the insured has reached his policy’s maximum benefit period his LTC coverage will not cease because he has yet to use the remaining amount of benefits from his reimbursement long term care insurance policy.
We can provide you with different long term care insurance policies and long term care quotes upon your request. Check out our website now to find out how you can save time and money through the long term care insurance quotes we provide.
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