Long-term care insurance plans were created to offset many of the rising costs that are associated with living longer. Such costs may be related to medical care, including direct healthcare expenses, as well as expenses associated with long-term care facilities. There are several types of long-term care insurance plans to address the needs of seniors who may need additional assistance in meeting their long-term care goals. For those who would like to learn more about the top long term care insurance provider in NJ, here is a brief explanation of the types of policies that are available and how they work.
Types of Long Term Care Insurance Policies
It is important to understand how long-term insurance policies work prior to purchasing one. This will ensure the policy holder has chosen the best fit for their healthcare needs and expenses. Long-term care insurance policies are important because they transfer the cost of these expenses onto the insurance company and not the senior’s personal assets such as savings, retirement earnings and even Social Security payments. Such resources could quickly diminish if the proper planning has not occurred. From protecting adult children from the costly expenses associated with caring for their senior parents to protecting the senior’s retirement assets, a long-term care plan is important for the senior’s overall financial plan and there are many features as well as benefits of long-term care insurance. Here are the top 3 long-term insurance policies on the market:
- Reimbursement Policies – Traditional reimbursement policies are a popular choice for many seniors. These policies require expenses to be paid up front and then reimbursement is provided up to a certain daily or monthly maximum. For instance, if the reimbursable amount is $250 a day for residing in a nursing home and the senior incurs $200 a day in fees, they will be reimbursed through a claim for the $200 a day only to cover those expenses. Alternatively, if they have a reimbursable amount of $250 a day but incurred expenses of $500 at the same facility, they will still only be reimbursed for the $250 according to their reimbursement insurance plan.
These plans may require the policy holder to submit bills in support of the claim. This is because some expenses are limited and may not be reimbursable according to the policy. In other words, some expenses and scenarios may be excluded from coverage and may not be reimbursable.
- Indemnity Policies – Indemnity policies, which may also include disability insurance, are a flexible alternative when compared to reimbursement plans. These plans provide a flat benefit amount per day or month no matter the expense type incurred. This modern insurance option is a simple plan that usually provides a per diem benefit that can be used across the board for multiple expenses. This also means that supporting bills or receipts are not required for claim submission. While these plans are typically more expensive when compared to reimbursement plans, however many seniors and their relatives prefer the flexibility that these plans offer as there is less paperwork to submit to the carrier.
- Hybrid Policies – There are also hybrid policies available that combine the benefits of both reimbursement an indemnity plans and that may offer additional benefits such as death benefits paid to beneficiaries, as well as other living benefits where sums are paid when there is an instance of critical illness or other long-term care situations. Consult with a long-term insurance carrier for more details about these hybrid plans.
Long-term care associated with aging can be very expensive. This is why it is so important to be prepared for the healthcare and daily living care expenses that will be incurred as the senior’s direct care needs continue to increase with time. Long-term care policies are important because they provide the senior and their family with peace of mind in knowing they are adequately prepared for the long-term needs of the senior. Such plans help to remove the stress and worry that is often associated with the rising costs of senior healthcare expenses over the long run. To find the best plan that provides the best rates and reputation for meeting policy holder needs, contact a long-term care insurance provider in NJ. Quickly find a top insurance company near you and speak to a caring long-term care insurance expert who can provide more information on the types of policies that are available based on the state of residence.