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Long Term Care Insurance

A Long Term Care (LTC) plan is the best guarantee of your financial security and independence, especially during your retirement years. You, and your family, may depend on it one day to pay ongoing medical expenses and add much needed emotional and psychological support. Yet most people are sold a policy instead of selecting a plan that’s appropriate for their needs. There's been a lot of changes within the insurance industry recently as to the type of coverage offered, the premium cost and the medical underwriting. No one company is best for everyone. And the government isn’t setting aside reserves for your LTC bills, nor do any of the health care proposals contain new LTC benefits. We're on our own to figure this out! To find the plan that will work for you, you'll need trustworthy advice.

As an experienced independent agent, educated and certified in LTC, I provide a unique insight into the LTC industry. You’ll hear why the government won’t pay for your LTC. You’ll see all the available insurance options and who offers them. You'll see which companies are the safest and most financially secure. You’ll learn how claims are paid, especially for Home Care situations! You'll be able to choose the deductible you want and co-insure part of the risk.

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.

One of the most important, and least understood, features of a LTC policy is how claims are paid. 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. This can simplify the claims process and 'free up' the entire benefit for you to use however you want.

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. See how each policy pays under these situations.

Links to More Information

If you're computer-comfortable, here are some national LTC sites that will provide you with current, objective LTC planning ideas.

Please give them a try and let me know of any questions you have.

American Association for Long Term Care Insurance
Provides a wealth of information for consumers. Click on the two-minute message from the director, Jesse Slome, and then go to the "For Consumers" tab for more specific information. It's what most consumers have been looking for!

The National Clearing House for Long Term Care Information
An overview of public and private LTC options.

 

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