Living Benefits Solutions
Long Term Care Insurance
This type of insurance is designed to provide you with financial help, when at some point in your life you might have to enter a long term care facility or receive special medical care in your home, thus not having to exchaust your savings or rely on other sources of funding.
LTC comes in three types of plans.
Reimbursement Plans
With this type of plan you have to pay the expenses you have incurred, submit the receipts to the insurance company for reimbursement of an amount up to a pre-set maximum. This type of plan also stipulates where you can receive care, and who can provide it to you, which generally renders care provided by an informal caregiver such as a family member ineligible
Indemnity Plans
With this plan the insurer pays you, once your claim is verified, the specific amount daily or weekly amount you have purchased regardless of whether your actual expenses are higher or lower. Again, as above, the plan stipulates where you can receive care, and who can provide it to you.
Income Plans
These plans are similar to disability insurance, whereby, once your claim is approved, you keep receiving a monthly benefit for the period of coverage you selected in the application for this type of insurance, regardless of the source of care you are receiving. Great flexibility and thus more expensive.
Benefits are payable when you become unable to perform 2 or more Activities of Daily Living, or have suffered a cognitive impairment such as Alzheimer’s or Parkinson’s Disease. The 6 ADLs are Bathing, Eating, Dressing, Toileting, Transferring and Continence.
