Q: A number of the long term care insurance policies I am researching enable for an indemnity benefit. Will you explain what meaning and what benefits it could offer?

The Problem - Reimbursement Only Policies

Most future care insurance policies are designed as reimbursement only. With a reimbursement solely policy, upon submitting all of your receipts for long term care expenses the insurance company can reimburse you up to your policy’s limits. Sadly, you will have ancillary expenses associated along with your long run care, together with expenses to:

1. add ramps and expand doorways throughout your home
2. add additional railings to your staircases or add wheelchair lifts
3. purchase or lease a van with a elevate to get to and from your physician’s office

You’ll additionally want complete control over how you would like to pay your future care benefit, regardless of your actual expenses. That flexibility isn’t permitted with a reimbursement solely policy.

The Solution - Indemnity Policies

Unlike reimbursement only policies, indemnity policies pay edges on top of and beyond your actual long run care expenses. There are 2 basic varieties of indemnity policies, full and partial.

Full Indemnity Policy

With a full indemnity policy (generally known as a flexible money benefit or money model), once you simply require long run care the insurance company pays you a monthly benefit. You receive these payments regardless of your actual expenses. Imagine your policy provides a $half dozen,000 monthly benefit. Irrespective of the amount or price of your care, the insurance company can pay you $6,000 a month. You’ll be able to pay an unlicensed friend or friend to care for you. You can payoff your mortgage. You’ll invest in your grandchild’s faculty fund. You’ll spend, save or invest the money however you choose.

Partial Indemnity Policy

With a partial indemnity policy (sometimes called a money benefit or monthly indemnity benefit), once you actually receive at least one hour of future care per day you receive a daily benefit. You receive these payments irrespective of your actual expenses. Imagine your policy provides a $two hundred daily benefit. No matter the value of your care, the insurance company will pay you $two hundred a day. You can pay, save or invest the cash but you choose.

Obtaining the Most Out of Your Policy

Each full and partial indemnity polices address an underlying concern that you’ll have when you purchase a policy - you would like the policy’s maximum benefit regardless of your actual expenses. With each types of polices the concern is eliminated.

Action Step - Shield Yourself with an Indemnity Policy

When you get an indemnity policy you defend yourself from sudden expenses and gain the flexibleness to pay, save or invest your money how you see fit.

06/15/09 Read more other useful articles about temporary medical insurance, aetna medical insurance and self employed health insurance quote