What types of Long-Term Care Insurance policies are there?
Answer:
Most policies pay benefits in one of three ways:
- Reimbursement: Pays covered expenses up to the policy's benefit limit.
- Cash indemnity: Pays a fixed cash benefit once you qualify, regardless of actual expenses.
- Disability or income-style: Some older policies pay a fixed daily or monthly amount with fewer documentation requirements.
Knowing how your policy pays benefits helps you understand what documentation will be required.