Long term care policy types

of 3
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information Report
Category:

Economy & Finance

Published:

Views: 19 | Pages: 3

Extension: PDF | Download: 0

Share
Description
Understand what are the basic long-term care policy types. Different Long-term Care Policy Types • Reimbursement long-term care insurance • Indemnity long-term care insurance • Partnership long-term care insurance Many people find themselves spending for their own long-term care expenses. This is not the most ideal strategy since personal savings can quickly become insufficient when pitted against very expensive long-term care costs. A way to protect your funds is through investing in the right long-term care policy types.
Transcript
  • 1. Long-term Care Policy TypesMany people find themselves spending for their own long-term careexpenses. This is not the most ideal strategy since personal savingscan quickly become insufficient when pitted against very expensivelong-term care costs. A way to protect your funds is throughinvesting in the right long-term care policy types. Different Long-term Care Policy Types Reimbursement long-term care insurance Indemnity long-term care insurance Partnership long-term care insuranceAll these policies will shield you from the blows of long-term carecosts, but with some specific differences in the way they weredesigned.What is Reimbursement Long Term Care Insurance? The insured will be reimbursed the exact amount spent for long- term care servicesExample: If you bought a $200 per day plan, and spent %150 onyour home care needs, you will get %150 back. The remaining $50stays in the policy’s benefit allotment.Pros: Most long-term care insurance companies offer this type of policy. Premiums are more affordable than other types of policies Perfect for people who do have a considerable amount of savings and would only want some form of subsidy for their long-term care expenses.
  • 2. Cons: The reimbursable amount is only up to the policy’s limit Does not cover ancillary and miscellaneous expenses, such as money you dish out for wheelchair lifts, railings or ramps for your doorways, or vehicle rental fees for doing your daily activities or going to your doctor There’s not a lot of flexibility or control over how benefits are allotted and used May not be suitable if the illness or disability requires so much more attention and 24-hour care/assistanceWhat is Indemnity Long Term Care Insurance? The insured will be paid the full daily benefit amount, regardless of his or her actual expenses.Example: If you bought a $200 per day plan, and spent %150 onyour home care needs, you will still get $200 as a daily benefit. Youcan do what you please with the remaining $50.Pros: Gives more freedom to the insured in terms of how he wants to use his cash benefits. The excess amount can be put aside as additional savings or can even be invested in something that can generate extra income for the patientCons: Since indemnity policies pay out the maximum daily benefit regardless of the bill, its premiums are more expensive than reimbursement policy types.
  • 3. What is Partnership Long Term Care Insurance? The insured can qualify for Medicaid once he has exhausted his policy benefits.Example: If you bought a five-year benefit period and ended upneeding care beyond that, you can still apply for Medicaidassistance without losing your assets and savings. Medicaid is a public health care assistance program catering to low income families or people with very limited resources. Recipients of the program should be legally destitute before receiving benefits, thus leaving most people note eligible for aid.Pros: LTC insurance holders can qualify for Medicaid without getting rid of all their assets and spending themselves to poverty Provides good asset protection for its policy holders Offers the possibility of buying less coverage The amount paid by the insurance company is also the amount of assets the patient can keepExample: If an insurance policy paid $150,000 in benefits, theinsured can also keep $150,000 worth of his assets and still beeligible for Medicaid. Without the partnership policy, the insuredwould need to practically spend all that $150,000 in order to qualifyfor Medicaid’s long-term care payouts.Cons: Different states have different partnership programs and different Medicaid eligibility requirements Partnership programs do not automatically ensure Medicaid coverage. Patients must still meet a state’s Medicaid income and functional eligibility requirements
  • We Need Your Support
    Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

    Thanks to everyone for your continued support.

    No, Thanks
    SAVE OUR EARTH

    We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

    More details...

    Sign Now!

    We are very appreciated for your Prompt Action!

    x