Insurance companies are continuously churning out new products which the public will find useful to their future health care needs. New long term care insurance policy options are now made available in the market apart from the existing ones which many find too expensive for comfort.
They call it combo policies, these new insurance products that aim to get the attention of individuals whose application for the standard LTCI policy had been declined due to pre-existing conditions.
These combo polices are actually life insurance integrated with "accelerated" death benefits which allow policyholders to withdraw some cash in the event that they become seriously ill. The money that they withdraw from their death benefits can be used according to their discretion.
For example, an insured person is receiving in-home care and wants maneuvering around the house to be easier and safer so he spends the money which he withdrew from his combo policy's death benefits on a wheelchair ramp, some security grips and on handrails.
These new insurance products were not designed to replace existing LTCI policies but to offer an option to individuals who remain uninsured and at risk of the country's high cost of care.
According to the statistics, the population of insured individuals increased last year as the sales of combo policies increased by 68%. Just keep your fingers crossed and pray that these policyholders won't deplete their assets to the annual premium of a combo policy as it happens to be way higher than standard LTCI policies.
Long Term Care Insurance Policy Options and What To Look For
There are, indeed, so many ways that you can plan your future health care but don't discount your budget. Just like on food, clothing, and housing, you have to allot a specific budget amount for your long term care (LTC) plan to avoid depleting your assets in no time.
According to some individuals who bought the combo policy as they were enticed by its offerings, they are currently paying out 20% more for their annual premium.
Aside from paying a higher premium, another downside to buying a combo policy is the possibility of using up the death benefits should you come down to a serious illness and require LTC. Instead of passing on the benefits of your insurance to your heirs you will wind up leaving them penniless.
Although it might seem hitting two or three birds with one stone, a combo policy is not ideal because your benefits are divided into different purposes. You're better off with a standard LTCI policy or one which qualifies with the Partnership Program.
One of those standard LTCI policies is the reimbursement LTCI policy which reimburses the insured individual of his actual expenses on care up to his maximum daily benefit amount.
Another classic LTCI policy is the indemnity which pays the insured his maximum daily benefit amount regardless of his actual expenses on care.
Last but not least are policies that comply with the Partnership Program. These allow insured individuals to receive further care via Medicaid without spending down their assets. Partnership policyholders can apply for Medicaid after having exhausted their insurance benefits without spending down the amount of their assets that is equivalent to the benefits that they have received from their policy.
You will never run out of long term care insurance policy options but you have to start looking at these now while you're young, healthy and active at work. If you wait till later, it might be too late.
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