Protection from Unexpected Long Term Care Costs
Among the long term care insurance policies that are sold in the market, buyers consider the long term care indemnity policy more advantageous, albeit expensive, than its counterpart reimbursement policy.
Human beings by nature like to be in control of their lives. Kids don’t want to be reminded that it’s past their bedtime. Young adults don’t want unsolicited advice from their parents and peers when it comes to choosing the career that they want to pursue, and old people don’t want to be treated like babies.
An indemnity long term care insurance (LTCI) policy allows an insured elderly or disabled person to be in full control of his insurance benefits. Unlike reimbursement LTCI policies which reimburse insured individuals of the exact amount of their total expenses on care, an indemnity policy will pay out the full daily or monthly benefit amount of the policyholder regardless of the actual long term care expenses that he has incurred.
Just like with other LTCI policies, though, the owner of an indemnity LTCI policy has to meet the requirements of his policy before he can receive his benefits. Such requirements would be assistance with two or all of the activities for daily living (ADL) namely eating, bathing, dressing, toileting, continence, and transferring or walking from the bed to a chair or vice versa; or cognitive impairment.
Owning an indemnity policy gives one absolute freedom to choose where to receive care. He can also have family members care for him and pay them instead of hiring a home health aide to assist him with the ADL.
What’s more, an indemnity policy does not box an individual in the conventional long term care (LTC) setting. It encourages a person to receive care in whichever manner that suits his preference.
More Freedom with Long Term Care Indemnity Policy
Indemnity policies are specially designed for people who want to receive care in the confines of their homes. When you’re thinking about modifying your home, adding necessary safety structures such as wheelchair ramps, lifts, shower security grips, and the like, you will find this type of insurance product very beneficial.
If you’re going to choose a reimbursement policy and then undergo home modification it will take long before you can reimburse your expenses. With an indemnity policy, you only have to meet your policy’s requirements and your benefits will start pouring in.
There are two types of indemnity policies and these are the Full Indemnity Policy or the Cash Plan and the Partial Indemnity Policy. With a cash plan, you will instantly receive your monthly benefit from your insurer once you qualify for LTC regardless of your actual expenses on care.
Meanwhile, the partial indemnity policy requires the insured individual to get at least one hour of care before he can receive his maximum daily benefit.
Both types of indemnity policies are advantageous because once the insured individual receives his benefits he can choose to spend it however he wishes. Just remember that a long term care indemnity policy is primarily intended to cover LTC expenses and not travel or vacation expenses. In the event that you exhaust your benefits before the end of your benefit period, you will have to cover your succeeding LTC expenses from out-of-pocket.
Processing your request, Please wait....
