Long Term Care Options for Insurance Policyholders

• Reimbursement

Reimbursement LTC insurance policies are the most affordable of the three, and is therefore the most common choice. With this type of policy, the insured can be reimbursed for an amount up to their maximum daily or weekly benefit whenever they need care, regardless of the setting. Any unused or remaining amount is left in their pool of money, ready to be drawn later.

Here’s a simple example: Your stay in a nursing facility amounts to $200 a day. If you have a maximum daily benefit of $250, your insurance will pay the $200 while the remainder of $50 will stay in your pool for future use.

It’s important to note that insurance companies typically require official receipts before reimbursing said bills. For this reason, this type of policy is recommended for those who will be needing care from medical facilities rather than from home.

• Indemnity

Indemnity LTCi policies is more expensive than the previous one since it offers more flexibility to the insured on how they can spend their benefits. With this you can receive the exact amount of your maximum benefit whenever you need care, regardless of the actual costs. Any remaining amount left is up to your discretion to use, which expands your long term care options.

Using the same numbers in the above example, with an indemnity policy, you can keep the $50 and spend it as you see fit. Another perk is that it allows the insured to set an amount for home modification, so that they can receive the necessary care at home instead of having to stay in a more professional medical setting.

• Partnership Program

The government sponsored Partnership Program is a bit different from the previous two in that its aim is to help policyholders qualify for Medicaid’s stringent limits. Normally, you have to be below a certain asset threshold in order to receive Medicaid assistance, but a policy that’s part of the Partnership Program allows you to protect assets equivalent to your policy’s benefits when calculating for the requirements.

Essentially, this makes it easier for you to continually receive the care that you need even though your insurance policy’s benefit pool has run out, and even if you still have too much savings or assets to comply with Medicaid’s requirements. 
There are more insurance options you can consider than those presented here, and the variety of policies you can purchase to handle your LTC is extensive and also customizable.

There are even life or health insurance policies that can have riders for long term care. Simply trying to cover them all would be impossible, and it’s best to speak with a licensed insurance agent to fully understand your long term care options.

For more information, you can browse some reading materials on this website.