subject: Common Types Of Long Term Care Insurance Policies [print this page] Statistics show that there are more insured individuals this year compared to the previous year. Guess with Medicaid budget on the line and no clear health care reform in the offing besides the CLASS Act, people have started to realize that theres more to benefit from the different types of long term care insurance policies.
Although all long term care insurance (LTCI) policies are designed to cover peoples future expenses on care, you only have to secure one for yourself. Each of these LTCI policies bears unique features and offerings to fit everybodys specific healthcare needs. Inconspicuous
LTCI policies do not require an individual to be ill before he can claim his benefits. When he can no longer perform two or more of the six activities of daily living (ADL) resulting from a health disorder or accident, he instantly qualifies for long term care (LTC) and he can claim his insurance benefits from his insurer.
Ones LTCI benefits, however, will only start rolling in once he has already satisfied the elimination period that is stipulated on his policy.
To proceed with the different kinds of LTCI policies, the most common type is the reimbursement policy. If youre looking for an LTCI plan that is budget friendly this type of policy is ideal for you because it is the most affordable. With a reimbursement policy, you will be able to reimburse the exact amount of your total expenses on care up to your maximum daily benefit amount. If your total expenses on care exceed your maximum daily benefit, youll have to pay the excess amount using your own resources.
For example, your policy indicates a maximum daily benefit amount of $250 but a days stay in a nursing home only cost you $220, which therefore is the amount that shall be reimbursed to you by your insurer. Meanwhile, the remaining $30 of your benefit amount shall be placed in your trust fund which you can use in the future.
Say the expenses you incurred in the nursing home amounted to $275 then your insurer will only reimburse $250 while you need to foot the remaining $25.
Identifying Other Types of Long Term Care Insurance Policies
Indemnity LTCI policy is another type that is more expensive as it pays out to the policyholder his full maximum daily benefit amount regardless of how much he had spent on care.
This type of policy is specially designed for people who are receiving in-home care, as it does not require receipts or other official documents from an LTC facility that will prove the policyholder was, indeed, under its care for a certain period.
Owners of reimbursement policies, on the other hand, have to submit official nursing home receipts first to their insurer before it reimburses their expenses.
The third kind of LTCI policy complies with the partnership program, a joint effort between private insurance companies and various state government agencies, which aims to get every American to plan his future healthcare.
Partnership LTCI policies allow policyholders to apply for Medicaid assistance without spending down their assets once theyve already used up their maximum benefit amount.
To learn more about the different types of long term care insurance policies contact your insurance agent. Study each option very well to ensure that you get maximum health care coverage and financial protection in the future.
by: Finella Parks
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