Coordination of benefits in Long-Term Care Insurance is a provision that specifies how multiple insurance policies or government agencies should work together to provide long-term care benefits.
The purpose of this provision is to prevent insured individuals from receiving duplicate or excessive benefits, which could lead to the individual profiting off their insurance coverage.
The coordination of benefits provision states that the policy will only pay out benefits after any other policy or government agency has made payments.
In other words, the LTC Insurance policy will not provide any additional benefits if the insured is already receiving benefits from another source. This encourages responsible and reasonable use of coverage. It also prevents the individual from receiving more money than the actual cost of their long-term care.