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LTC Staff
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on Monday, 16 June 2014
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How Are Long Term Care Benefits Paid

Companies generally pay benefits one of two ways: the expense-incurred method or the indemnity method. It’s important to read your policy information and compare the benefits and premiums.


Policies using the expense-incurred method will pay the cost of the expense or the dollar limit of your policy, whichever is less – to you or your doctor or hospital. Most policies pay benefits using the expense-incurred method.

Policies using the indemnity method pay a set dollar amount up to the limit of the policy regardless of the cost of the service you receive.

For tax-qualified policies that pay benefits using the indemnity method, you may have to pay taxes on benefits that exceed your actual cost or $330 per day, whichever is greater.

© 2013 – A Shopper’s Guide to Long Term Care Insurance

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