This type of insurance is not a one-size-fits-all product, and this is why different types of long term care policies are available in the market. Because of the people’s varying financial capacities and care needs, long term care insurance companies offer these three types of long term care insurance policies:
The reimbursement long term care insurance policy is the most common among the three. Individuals who have this policy are reimbursed the same amount that they spend on long term care services.
This means that a person who purchased a $200-a-day policy but ends up with a bill of $150 a day will be reimbursed $150. The remaining balance stays in the pool for future care needs.
People with the indemnity long term care insurance policy receive the exact amount of the daily benefit. They are given the liberty to spend it the way want, and they do not need a bill to receive the fund. They only need to either have a cognitive impairment or inability to complete two of the six ADLs.
Individuals who have the disability model indemnity plan receive their daily benefit amount with or without a bill. To receive the benefits, the individuals must have a cognitive impairment or be unable to complete two of the ADLs.
The partnership policy is a collaboration between the state and a private insurance company. This policy allows people to qualify for Medicaid without “spending down” their assets in the event that they exhaust their policy benefits.