Disability & Long-Term CareQuestion 96 of 716

A long-term care policy that pays a flat $200 daily amount whenever benefits are triggered, regardless of the actual cost of care, is BEST described as:

a.A point-of-service LTC policy
b.A reimbursement LTC policy
c.An indemnity health insurance policy
d.An indemnity (per diem) LTC policy

Explanation

An indemnity, or per-diem, LTC policy pays a flat daily or monthly amount as soon as a benefit trigger is met, regardless of what care actually costs. A reimbursement policy pays only the actual expenses incurred, up to a stated daily or monthly limit.

Law Reference: Industry product convention

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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)
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