A Quick Rundown of the Different Types of Long Term Care Insurance Policies
A Quick Rundown of the Different Types of Long Term Care Insurance Policies
It is good to know that the need and value of having a Long Term Care insurance policy is finally being realized by some citizens. To date, over 10 million Americans own a Long Term Care policy and thousands more are being informed and educated about the uses and benefits of it. With aggressive information campaign and continuous effort to stabilize the Long Term Care insurance industry, it would not be surprising if more and more United States residents apply and be an LTC policy owner in the future.
But before you give in to the idea of buying Long Term Care insurance, be sure that you understand very well how an LTC insurance plan works.
Long Term Care insurance policies cover medical and non-medical needs of the insured person, especially to those who suffer prolonged illnesses or diseases such as Alzheimer's disease. These services may include, but not limited to, adult day care, rehabilitation and therapy, nursing home facilities, use of other medical facilities, homemaking services, and daily care from medical professionals. There are also different types of Long Term Care insurance policies which the interested applicant may choose from, depending on what he believes would cover his long term care needs in the future. Careful planning and thorough evaluation are needed in order to be able to decide on the perfect Long Term Care insurance plan for you.
The first type of Long Term Care insurance policy is the Reimbursement Insurance Policy. This is the most common type among the three types of Long Term Care insurance policies. The insured individual will be given a reimbursement for the exact bill or amount of the long term care services that he used, but it must not exceed the allotted daily coverage of your policy. For example, your Long Term Care policy covers a daily expense of $200, but the actual amount that you use every day only costs $150, you will be given $150 as reimbursement daily. The remaining $50 that you were not able to use will remain in the insurance pool and may be used to make the insurance coverage longer.
The Indemnity policy on the other hand is usually more expensive than a Reimbursement policy. With this policy, you will receive your daily benefit amount, whether or not the actual amount of care received exceeds your daily benefit cap. For example, you have a plan coverage for $200 a day and you are only able to use $180, you can keep the remaining $20. But if your plan pays for $200 maximum coverage for a day, and you use $230, you will be the one responsible in paying the excess $30.
Partnership Long Term Care insurance policy lets you apply and still qualify to receive benefits from Medicaid, regardless if the person has exceeded the highest required asset limit or if he has already exhausted his policy benefits. Participating states which utilize Partnership programs may have different rules and policies with regards to this type of LTC insurance plan but the condition for a benefit period and a certain minimum daily amount of benefits apply to all. Partnership policies also have tax deductions, asset disregard, reciprocity agreement, and inflation protection. Can Long Term Care Insurance Policies Ease My Worries After Retirement? Points to Consider Before Buying a Long Term Care Insurance Policy How To Recognize The Best Life Insurance Quote How to Buy Term Life Insurance Online Finding Cheap Term Life Insurance HCG - Slimming Down and Increasing Way of life How To Buy Life Insurance Which Are Highly Rated Life Insurance Companies? Recondition Your Mind and Marvel at Your Transformed Life Online Life Insurance With BMO Insurance Head Pressure And Ringing In Ears - Stop the Noise in Your Head and Start Living Your Life Once Again! What is whole life insurance exactly? Things to Ponder When Buying Insurance for Long Term Care