|Reimbursement is the standard way Tax Qualified policies pay for qualified long term care expenses. Some reimbursement contracts also offer a Cash Benefit (indemnity) choice in advance of care as a monthly lump sum.
Case in point:
A Reimbursement policy will either reimburse the insured or pay the provider directly according to the terms after documentation of care provided is submitted.
The Cash Benefit pays a fixed monthly amount while the insured qualifies for benefits, regardless of whether the insured actually receives care. This feature is designed to help with the expense of caring for someone at home, especially when care is provided by a family member.
Cost of benefit:
None. There is no impact to the base policy premium; the feature is a feature of the policy.