Reimbursement vs Indemnity Long Term Care Insurance
Reimbursement vs Indemnity LTC Insurance Benefits
We’re often asked to compare Indemnity vs Reimbursement long term care insurance benefits. The best time to know the difference of Indemnity Vs Reimbursement long term care insurance is before you buy a policy.
A traditional long term care reimbursement policy “reimburses” the insured for actual expenses incurred. With a long term care reimbursement policy, you will have to submit care provider bills at time of claim. There may also be limits to the type of service allowed for reimbursement. And you may have limits on the amount you can receive each day. To understand how a reimbursement LTC plan can affect you in the future, ask your insurance agent for a Specimen Policy of the proposed insurance. Then go straight to the section covering policy Exclusions and look for answers to questions like:
- What happens if I have high home health care costs on a particular day(s) and it exceeds the policy’s daily maximum?
- What happens if I want my family member to be my caregiver?
- Are certain types of LTC facilities or medical equipment excluded?
- What if I need to make significant home modifications so I can stay home as long as possible. Are there limits on how much the LTC policy will pay for these modifications?
- Are there geographic limitations?
An “indemnity” long term care benefit pays a cash benefit regardless of actual expenses. Because we never know what type of care we may need, indemnity LTC benefits can be meaningful. For example, will we need care at home or in a facility? An Indemnity long term care insurance benefit can provide additional peace of mind because it has no limitations on your caregivers, types of care or care settings.
The indemnity long term care benefit can pay a monthly cash benefit, regardless of what you’re doing with the money. You can spend your cash indemnity LTC benefit on home modifications, family members or anything else that suits you.
Nationwide Insurance Indemnity Long Term Care Insurance
Nationwide Insurance offers one of the best long term care life insurance hybrid policy’s. Also referred to as asset based long term care insurance, this hybrid life insurance provides cash indemnity long term care benefits. By attaching a long term care rider to a Nationwide life insurance policy, you can accelerate the death benefit to pay for long term care.
How Does A Long Term Care Rider Work?
You select the long-term care amount when you buy your hybrid life insurance policy. Benefits are paid income tax-free after qualifying requirements are met.
If you never need long-term care, your beneficiaries will receive an income tax-free death benefit as long as your policy remains in force. If you do need long-term care, your beneficiaries will still receive the greater amount (less any policy debts) between: (A) Any unused long-term care benefits OR (B) 10% of the base policy’s specified amount (thanks to the guaranteed minimum death benefit)
How Does The Nationwide Insurance Cash Indemnity LTC Benefit Work?
- Choose to receive up to 100% of your available monthly cash benefit.
- Use your monthly cash benefit without restrictions. There is no need to submit monthly bills or receipts once your claim is approved.
- Unused monthly LTC benefits can be used for other expenses as you see fit, including saving for future expenses.
- Allows you to receive long term care services outside the United States.
Our long term care insurance brokers are here to help. They can supply you with recommendations and LTC quotes for your state and personal situation. We shop the top-rated LTC insurance companies and help you find the best rate, company and policy. We’ll also illustrate the differences of specific Indemnity vs Reimbursement long term care insurance plans.
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