Years ago, hybrid long-term care policies had not been invented. Traditional standalone LTC policies offered a rich benefit called “cash indemnity” benefits. This meant that when it came time to make a claim, your requirement for documentation of actual expenses was virtually non-existent.
Over time, insurance companies became less and less interested in marketing traditional LTC coverage. The once-coveted “cash” payout policies disappeared. All standalone LTC policies these days are “reimbursement,” which carries a burden of documentation at time of claim.
Enter Hybrid Cash Indemnity Long-Term Care Insurance
Thankfully for consumers in the 2020s, insurance companies have brought back the cash payment of benefits in select HYBRID policy options. As the market heats up, and insurers compete for your business, several companies including Nationwide and Securian have introduced cash benefit options as default in their policies. There are still reimbursement hybrid plans on the market from companies like Lincoln, OneAmerica, PacLife, and many others.
Experience After Talking w/ 15,000 families.
As part of my career, I’ve talked with over 15,000 families about Long-Term Care planning. Many of our clients are interested in LTC products because their parents have a policy. They are interested in protecting their own families. I always ask them about their experience with the claims process, if they have any experience. After all, I like to know about the end-user experience of the products I sell.
The one critique I’ve heard over and over again is that the process of keeping records and submitting them to insurers is a friction point. Consistently, people complain about certain carriers being harder to work with. We know who to avoid placing business with! But even the major, highly-rated insurers can make the process of receiving insurance benefit claims money harder than it should be. With cash indemnity, this concern goes out the window!
Compare Your Options
The fact is, a hybrid plan is not for everyone. A cash indemnity plan is not for everyone. For many, a combination of the two is the best vehicle for protection. Only a trained expert can help identify the best policy for you. Reach out today for a free comparison of your options.