Policy Options For Long Term Care Planners

Policy Options For Long Term Care Planners

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There are basically three long term care insurance policy options that buyers can choose from. Each offers a set of unique features to fit every individuals healthcare needs.

Reimbursement long term care insurance (LTCI) policies are the most common as these happen to be the most affordable. With a comprehensive reimbursement policy, the policyholder will receive the exact amount of his total expenses on care regardless of long term care setting, for as long as his total expenses will not exceed his policys maximum daily or monthly benefit.

For example, you purchased a comprehensive policy with a maximum daily benefit of $250 that is good for 1,000 days. One day, you were admitted into a nursing home that charges $219 for a days stay in its private room.

Upon your release from the nursing home, you have to submit to your insurer the official receipt which the facility issued to you so you can reimburse $219. Since your maximum daily benefit is $250, the remaining $31 shall remain in your pool of benefits which you can use in the future.

Most of the owners of reimbursement LTCI policies prefer to receive care in a long term care (LTC) facility rather than at home, as they are required to present official nursing home receipts, or hospital bills, to their insurer before they can reimburse their expenses.

Seldom are there home health aides that issue a receipt after payment has been made to them. No wonder these home health aides are more popular among individuals who have purchased indemnity LTCI policies.

More Long Term Care Insurance Policy Options

With an indemnity policy, a policyholder has more control over his insurance benefits.

These individuals with indemnity LTCI policies will receive the exact amount of their maximum daily benefit regardless of their actual expenses on care. If the insureds policy, for instance, stipulates that he has a maximum daily benefit of $200, this is the exact amount that will receive from his insurer even if he had only paid $38 to a home health aide for two hours of LTC service.

Aside from using their insurance benefits to pay LTC providers, individuals with indemnity policies also allot a portion of their benefits for home modification. This is especially true among those who vehemently refuse to be admitted into a nursing home. They used their benefits to have certain nursing home equipment installed to their homes such as electronic monitoring devices.

Now they are happily aging in place.

On the other hand, LTCI policies under the partnership program are also highly in demand especially among people with a lot of assets to protect. This type of policy allows the policyholder to apply for Medicaid assistance without spending down his assets up to Medicaids required asset limit.

Say your policy states that you have a three-year benefit period, but in the event that you exhaust your benefits before reaching the third year you can instantly apply for Medicaid to receive continuous care. At the same time you get to protect the total amount of your assets that is equivalent to your policys maximum benefit amount.

Some insurance companies offer hybrid policies, too, such as a universal life insurance with LTC rider. Contact your insurance agent now and learn more about your unlimited long term care insurance policy options.

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