• The ability to pay family & friends for providing care
  • First Day Benefits, automatically
  • Full monthly check regardless of expenses incurred
  • Spend the money anyway you want to or put it in your pocket
  • Premiums Waived Immediately
    •


Most long-term care insurance policies are designed to reimburse for what are called covered expenses.  This is true for policies sold in the past and most new policies sold today.  There’s nothing necessarily wrong with paying for covered expenses, unless the kind of help that you need doesn’t fit into the neat categories that most policies list as “covered expenses.”

The reimbursement model is similar to traditional health insurance.  In the days before fixed co-payments, PPOs and HMOs, insureds wrote out a personal check for care and then were reimbursed.  Not a huge hardship when medical care was low-tech and prescription drug costs never approached three figures.  In contrast, today, depending on the nature of the claim, out-of-pocket spending on long-term care ‘fronted’ by the claimant, who awaits reimbursement, may be several thousand dollars.

The fact is most care begins with a family crisis at home and an immediate need for CASH!

People want Long-Term Care insurance that has:

  • The ability to pay family and friends to provide care – with no restrictions
    • 78% of adults receiving LTC at home rely exclusively on assistance from family and friends1

  • The ability to pay family and friends for up to 7-9 years (The average length of Alzheimer’s disease)

    • Seven out of 10 people with Alzheimer’s disease live at home - family and friends provide almost 75% of their care2

  • The ability to help replace income, pay extra expenses, help with bills or whatever is needed at the time of care

    • 92% of adults want to be taken care of at home by family and professionals3

A cash benefit long-term care insurance policy, or a policy with a hybrid benefit avoids the reimbursement problem.  When the policyholder elects cash benefit policies, these benefits are paid by the insurance company at the beginning of the month, proactively.  The claimant enjoys the use of the money, for whatever purpose they desire, without first having to tap into his own wallet or bankbook.

1 “LTC Support for Family Caregivers,” Georgetown University LTC Financing Project, March, 2004

2 “Long Term Care and Alzheimer’s Disease In America: A Retrospective,” Genworth, 1/1/06

3    Lincoln Retirement Institute and Mathew Greenwald & Associates Survey