The Advantages Of Indemnity Long Term Care Insurance
Indemnity long term care insurance policy works the same and contains the features of other LTC policies. Before you start receiving benefits, your condition must be deemed insurable. A plan of care should be submitted and approved before the coverage starts. Either type of policy will issue certification period, and then pay only for the number of days you receive actual care.
Nevertheless, indemnity long term care insurance differs in some ways from regular LTC policies. Indemnity policies give you more control of your coverage and, of course, money; thus, you are more protected. It normally issues checks on the maximum allowable daily benefit amount in your policy. You could use that money either as incurred expenses or include this in your personal savings. This makes claims process less cumbersome
Indemnity long term care policies could be more advantageous for people receiving care at home. Youll find it more convenient and organized because you dont need to check medical bills from time to time and worry about caregivers.
However there are also risks posed on this type of policy so consumers must be careful in determining whether this policy is suitable for them or not. Some insurance companies include this policy as benefit rider or add-on. It is designed and benefits policyholders at younger age compared to adults in mid 60s and above. The policy is framework supports maximum benefit pay-out, rather than paying for actual expenses, premiums in indemnity policy is more expensive than regular LTC policies that provide claims.
There are two basic types of indemnity policiesfull and impartial. Here are their differences:
Full Indemnity Policy
This is also called the flexible cash benefit or cash model. The insurer will pay you monthly benefit, and you may use those payments regardless of the total expenses. For example, your policy gives $6,000 monthly benefit; the insurer will pay you $6,000 per month no matter how much your total actual expense is. With this, you can get the most out of your money. Youll be able to receive care from your friends or relatives, pay your mortgage, invest the money for future use, and do whatever you wish to with your money.
Partial Indemnity Policy
This is often refer to as cash benefit or monthly indemnity benefit. If you receive at least an hour of long term care per day then you will receive daily benefit. Just like the full indemnity policy, you may receive payments regardless of the actual expense, For example, your policy has $200 daily benefit, the insurer will disburse $200a day despite of the overall cost of care.
How to make the Most Out of your Policy
The two indemnity policy types provide answers to individual concerns that arise when purchasing a policy. They both give you the chance to maximize your benefits aside from using only limited or prescribed amount of benefit and regardless of the overall expenses.
Unlike reimbursement policies, both partial and full indemnity policies give you flexibility as to how you use the money or benefits. You need not worry about keeping checks and bills and undergo rigorous claims process because indemnity policy is designed for you. You are also protecting yourself from unexpected and unreasonable expenses because you have the freedom to save or invest the way you want it to be.
by: Jenny Nielsen