Insurance companies are continually innovating to meet the changing Long Term Care industry. Medical technology, improvements in quality of care, new, more modern facilities are being built and alternative care programs developed. We have more choices than ever before and costs continue to rise. There are numerous types of policies available. The form in which policies take shape vary by company, however, there are two basic types of policies:

1. Specific Long Term Care Policies - These are policies that are separate from any health insurance or life insurance policy. They are single-purpose policies whose focus is to pay for Long Term Care costs. Within this category, there are two considerations, which can be found in our indemnity vs reimbursement section below.

2. Wrap Policies - These are policies that are generally attached as riders or "wraps" to either life insurance or annuity policies.

As a general rule, stand-alone policies offer the most comprehensive insurance at the best price. They also rely upon distinctions that may facilitate easier claims as well as allowing you to choose the benefits that fit your circumstances without additional insurance you may not want or need.


Stand-alone policies pay for only one type of care, such as home care or facility care. Integrated policies pay for all levels of care, including assisted living and home care. Most policies available today are integrated to allow for adequate coverage for all circumstances. We do not recommend home care only policies, or nursing facility only policies. Yet, in older policies that were designed as stand-alone, we offer a program for policyholders to apply for additional coverage to include all types of care.


The two most common ways for a Long Term Care policy to distribute benefits to you are the indemnity and reimbursement methods. When buying a policy, you are given a choice of how much daily benefit you would prefer, often ranging from $100 to $300 per day. Sometimes there is a weekly, rather than daily amount.

Reimbursement policies will pay for the daily(or weekly) cost of actual care. Example: Your selected daily benefit is $100 on your policy. the actual care you receive costs $90. The policy will pay $90. If the care costs $120 daily, you will receive $100 per day and must pay for the additional costs.

Indemnity policies pay the selected daily benefit when you need care, regardless of the actual cost of care.