Is Indemnity Benefit Worth It?

[Mr_Ed]

I didn't say that Pru or MOO offered an indemnity benefit rider, I said they offered that "boost in cash".

And, technically a cash benefit is an indemity benefit.

The MOO policy is not a cash policy.

It has a "cash alternative" which replaces the reimbursement benefit with a reduced cash benefit--I wouldn't call a reduced cash benefit a "boost".

 

[Arthur Rudnick]

"The MOO policy is not a cash policy"

I never said that MOO offered a cash policy. What I was trying to say was that their cash-benefit alternative was in essense an indemnity benefit.

 

[crimsontideagent]

I was referring to a indemnity RIDER, not an indemnity policy or cash POLICY. Big difference. You are arguing over semantics.

An indemnity RIDER is what it is - go talk about cash policies in another thread.
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it is a good rider. what companies are you writing

Guardian or Mass
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I know a guy who is a wizard in LTC who loves indemnity. His claim is there's no way we are going to know what medical procedures are going to look like in the future and some reimbursement plans may not pay for certain procedures and so indemnity helps prevent this issue. I'm a tad skeptical of this claim.

I'm a bit skeptical of that myself...

To be specific we are at a ceiling on monthly budget and it's down to a higher daily benefit now with compounding versus a lower daily benefit with indemnity and compounding.

Guy today tells me - it doesn't matter if they have indemnity if the cost of care is ABOVE the benefit. He leaned to go higher benefit and if you have extra dollars to work with then add it.

 

[Mr_Ed]

I was referring to a indemnity RIDER, not an indemnity policy or cash POLICY. Big difference. You are arguing over semantics.

An indemnity RIDER is what it is - go talk about cash policies in another thread.
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Guardian or Mass
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I'm a bit skeptical of that myself...

To be specific we are at a ceiling on monthly budget and it's down to a higher daily benefit now with compounding versus a lower daily benefit with indemnity and compounding.

Guy today tells me - it doesn't matter if they have indemnity if the cost of care is ABOVE the benefit. He leaned to go higher benefit and if you have extra dollars to work with then add it.

Exactly.

The only way that the Indemnity Benefit Rider is advantageous is if the Daily Benefit is higher than the current and projected cost of care.

 

[BNTRS]

I didn't say that Pru or MOO offered an indemnity benefit rider, I said they offered that "boost in cash".

And, technically a cash benefit is an indemity benefit.

I would technically disagree. The nature of an indemnity benefit is that you are paid the benefit for receiving services despite the actual cost. So the idea is, as long as care if being administered, you get paid the benefit regardless to the actual cost of the care. A cash plan simply says that you need to be eligible to receive care (you don't actually need to receive the care).

 

[ikeman07]

Although more expensive, the best option is a cash-benefit policy, which is offered by Pru & MedAmerica.
No bill or receipts to submit, full monthly benefit in CASH that can be used for anything, including informal caregivers. Also, payable anywhere in the world with no benefit restrictions.

I am looking at the Pru policy for a client who would like to retire overseas. I will have to check out the MedAmerica policy. Met offered a policy that would pay overseas, but that obviously wont work anymore. One thing to be aware of on these policies is that if your client does plan on living overseas, the medical records have to be in English for the claim to get paid. So depending on where your client may plan to live, they may need to pay for their medical records to be translated. just an fyi.

 

[Mr_Ed]

I am looking at the Pru policy for a client who would like to retire overseas. I will have to check out the MedAmerica policy. Met offered a policy that would pay overseas, but that obviously wont work anymore. One thing to be aware of on these policies is that if your client does plan on living overseas, the medical records have to be in English for the claim to get paid. So depending on where your client may plan to live, they may need to pay for their medical records to be translated. just an fyi.

The policies that offer "cash alternative benefits" can also be used to pay benefits overseas without having to provide receipts.

These products included: Transamerica's Transcare and Transcare Enhanced, United of Omaha's Assured Solutions Gold and "Cash First" policy, Mutual of Omaha's "Mutual Care Plus", as well as the "cash alternative" feature of Prudential's LTC3.

 

[Arthur Rudnick]

Ikeman,
If you're looking at the MedAmerica policy, unlike a number of other carriers who pay world-wide, MedAmerica will pay 100% of the benefit anywhere in the world with no restrictions. Pru's cash-benefit policy will do the same.

Hancock & Genworth also pay internationally, but with restictions:
Hancock will ony pay for only 1 yr. at 100% and Genworth will only pay 75% of the benefit for 4 yrs. in a faciliy only. They won't pay for home care and there is no waiver of premium.

If your clients will be moving overseas and never returning to the US, an all cash-benefit policy makes the most sense,

 

[Mr_Ed]

Ikeman,
If you're looking at the MedAmerica policy, unlike a number of other carriers who pay world-wide, MedAmerica will pay 100% of the benefit anywhere in the world with no restrictions. Pru's cash-benefit policy will do the same.

Hancock & Genworth also pay internationally, but with restictions:
Hancock will ony pay for only 1 yr. at 100% and Genworth will only pay 75% of the benefit for 4 yrs. in a faciliy only. They won't pay for home care and there is no waiver of premium.

If your clients will be moving overseas and never returning to the US, an all cash-benefit policy makes the most sense,

Be sure to compare the "all cash" policies with the policies that offer "cash alternative benefits".

For example an "all cash" policy might cost more than twice the premium as a "cash alternative benefit". That means, that for the same premium as a cash policy you might be able to get more than twice the benefits (on a reimbursement basis) and equal or better cash benefits.

 

[RichS]

Explain, in simple language, what an indemnity benefit is to the client and let them decide.