An indemnity plan is better from a logistical standpoint. Why? Because once you qualify for claim, you receive the policy’s stated payout without having to constantly collect and submit expense receipts. (Please be aware that any indemnity benefits that are higher than the daily cost of LTC are taxable.) However, a reimbursement plan is typically better from a price standpoint...sometimes far less costly.
Your best bet will be to compare these two types of policies (with otherwise similar benefits) and see if the price/logistical trade-off is worth it to you.
You'll also want to determine the overall tax treatment of the plan(s) that you are considering. Many indemnity plans don't qualify for a tax deduction on the insurance premium. Look for "qualified" LTC plans to take advantage of the tax deduction.
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