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LTC Insurance Blog
Simplifying the process of understanding Long Term Care, and helping you decide if Long Term Care insurance is right for you.
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
If you would like to speak with someone about Long Term Care insurance, please give us a call at 1-800-432-0091 or fill out our online form to request a free rate comparison.