Long Term Care policies will usually pay for eligible benefits using which of the following methods?

• A. Expense Incurred
• B. Fixed indemnity
• C. Per diem
• D. Reimbursement with receipts

Answer: (A)

Long-term care policies typically reimburse the actual costs you incur for eligible care, up to the policy’s limits. This means benefits are paid based on the charges you incur for services (with documentation) rather than a fixed daily amount. After care is received and you submit the provider bills, the insurer reimburses the documented expenses, up to the coverage limit and subject to any elimination period. Per diem and fixed indemnity, by contrast, pay a set amount regardless of the actual costs, which can either fall short or exceed real charges. Reimbursement with receipts describes the same idea as expense-incurred, but the standard phrasing used in many policies and exams emphasizes expense-incurred as the typical method.