Even if a person has enough funds or budget to get an LTC insurance plan, purchasing one will still be hard and complicated because it needs deep understanding and a lot of effort to decide about the different factors and choices that it offers. A Disability Model Indemnity plan is just one of the various policy type options that the insurance companies offer nowadays.
Since the number of uninsured individuals are still greater than those who already owns LTC insurance policies, the government, along with some private sectors, are working double time to send the message across – that the public must start considering and if possible, must purchase their LTC plans as soon as possible to avoid further financial dilemma in the future.
Because of the expensive premiums, the public thinks that they cannot compromise their urgent needs just to pay for some insurance plans that they are not even sure yet if they can use in the future. So to avoid stressing one’s budget and financial resources, insurance providers allow the policy applicants or potential insurance owners to decide on several factors regarding their LTC insurance plans. They can modify some features according to their health needs and budget so that they can also make full use of all their benefits.
In order to help an individual choose the right LTC plan for him, insurance companies offer two types of LTC options that he can choose from and one if these is known as the Disability Model Indemnity plan.
This option has more lenient and easier requirements as compared to the other policy type. However, because an individual can easily get payment from his insurance provider with this kind of policy, the amount is more expensive and higher than the more common type known as the Reimbursement policy.
Indemnity plans, also known as CASH policy, grants the insured individual the full amount of his insurance plan or pays him his maximum daily, weekly, or monthly benefit amount (depending on the policyholder’s insurance contract) even if he was not able to fully use all of these. If there would be any extra money left, he can freely use it whichever he wants to.
Also, this policy type does not require an individual to present proofs and documentations that prove that he receives medical and LTC treatment from authorized health workers. It only requires that the person must have at least two ADL (activities of daily living) assistance from another person or cognitive impairment to be able to start getting his policy benefits.
But it must be remembered that the insured individual must still keep track and manage his policy funds wisely because his insurance company will no longer provide him additional benefits or payment if his policy funds have been exhausted. If there would be any need to receive additional LTC services and facilities, the individual has to personally cover and pay for it this time.
These explanations about the Disability Model Indemnity plan might not be sufficient enough to understand this policy type better. But these are the most common facts and details that the public has to know about. For more assistance, insurance agents are always accommodating to your inquiries and questions so do not hesitate to contact one now.