Indemnity Long Term Care Insurance Information – Financeforhealth.com

a-few-things-to-remember-shutterstock_126652865Did you know that long term care insurance has several types? One of the most popular types is the indemnity long term care insurance policy. Although it works the same and contains most of the features of the average LTC policies, there are minor differences. With this type, your condition must be deemed as insurable before you start receiving benefits. It also costs more than a reimbursement type policy. On the other hand, it provides you with more money because it reimburses you the entire covered amount.

 

How Does It Work?

 

To help you understand this type of plan, consider yourself purchasing a policy that provides for $400 a day on long term care. With the indemnity, you receive $400 a day for covered care. Even when the bill charge you only $150, the plan still pays $400.

 

Advantages Of Indemnity Long Term Care Insurance

 

If you want to receive care at home, this type of insurance policy will benefit you more because of the convenience it provides. It also helps you to stay organized. Since the claim process is less cumbersome, you don’t have to check your medical bills every time or worry about caregivers expenses.

 

Disadvantages Of Indemnity Long Term Care Insurance

Since your long term care requirement is different with that of others, you need to determine if this type of policy is suitable for you or not. There are instances when insurance providers incorporate this policy as benefit rider or as an add-on. Another disadvantage of this type of plan is that premiums are generally higher because its framework supports maximum benefit pay-out.

 

Types Of Indemnity Long Term Care Insurance

This type of insurance can also be classified into two types. First is the Full Indemnity Policy, which is sometimes called flexible cash benefit or cash model. With this type, your insurance provider will pay you monthly benefit and you can use those payments regardless of the total expenses.

 

The second type is known as the Partial Indemnity Policy. This is also referred to as cash benefit or monthly indemnity benefit. With this type of policy, you will get at least an hour of long term care every day then you will receive daily benefit.

 

Both types allow you to maximize your benefits. Not like the typical reimbursement policies, indemnity insurance policies give you flexibility to use your money or benefits. Moreover, you don’t have to stress yourself because the claiming process is so easy. This is also considered as a good investment because you have the liberty to save for your future.

 

Today, there are many types of long term care insurance policies. Be a wise consumer and choose the type that best fits your requirements and health situation. If you want to save money, consider different solutions. Compare each type to find out one would best benefit you. You can also check online about indemnity long term care insurance and request a free quote. This way, you have a better idea of how much your premium will be. Consumer comparison websites are available to formulate quotes and discounts using your personal information.

Sources:

http://www.ltcfeds.com/epassets/documents/naic_shoppers_guide.pdf

http://www.insurance-forums.net/forum/long-term-care-insurance-forum/indemnity-vs-reimbursement-t9632.html

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