Situation |
Reimbursement |
Indemnity |
Nursing facility; room & board is $250 per day. |
Pays $200/day |
Pays $200/day |
Nursing facility; room & board is $150 per day. |
Pays $150/day |
Pays $200/day |
Home Care: licensed aide comes in 3 days/week, charges $100/day. |
Pays $100/day,
or $300/week. |
Pays $200/day,
or $600/week. |
Insured is at home with Alzheimer’s; won’t tolerate care from a licensed aide. |
Pays for one hour visit |
Pays $200/day |
Insured is at home receiving care. The family doesn’t trust the licensed aide; releases her after one hour. |
Pays for one hour visit |
Pays $200/day |
Insured is 85 y.o., receiving care at home. Who will collect and submit receipts to confirm expenses? |
Pays only for receipts submitted, up to daily maximum. |
Pays $200/day, with just one receipt. |
|
LTC Claims:
Reimbursment or Indemnity?
Do you want all your LTC
benefits, all the time?
Ninety percent of LTC companies pay claims on a reimbursement basis. That is, when you have an eligible LTC claim and you submit a covered expense, or a number of expenses, you will be reimbursed for those expenses up to the daily (or monthly) benefit limit.
A few companies will pay claims on an indemnity basis. That is, when you have an eligible LTC claim and you submit even one covered expense, you will be paid the entire daily (or monthly) benefit amount.
To the right is a table comparing two policies, each with a maximum daily benefit of $200. One pays on a reimbursement basis, the other pays on an indemnity basis. Let’s see how each policy pays under these situations.
LTC Company Appointments
Here are the insurance companies I am appointed with for LTC, as of August, 2009:
John Hancock Life |
MetLife |
Genworth Life |
Mass Mutual |
Mutual of Omaha |
Prudential |
Guardian / Berkshire Life |
Transamerica Life |
Equitable Life & Casualty |
Allianz |
State Life |
National States |
Illinois Mutual |
Assurity |
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