Indemnity vs. Reimbursement: Are We Asking the Right Question?

When discussing LTC solutions, I often hear advisors ask for indemnity benefits because they want their clients to receive cash and “do whatever they want with it.”

But let’s take a step back. 

Who is really asking for indemnity? The client or the advisor?

Most consumers don’t wake up asking for indemnity. In fact, most probably don’t know what the word means. What they do know is this:

They don’t want to be a burden on their family.

If an insurance company simply sends a check and offers little support beyond the payment, who ends up coordinating care, finding providers, managing schedules, handling invoices, and navigating the healthcare system?

Usually the family. 

One of the things that sets OneAmerica apart is the in-house Care Benefit Concierge. Claims are handled in-house, with a dedicated professional helping families navigate the claims journey from start to finish.  We’ve also developed a series of short consumer-focused videos (approximately two minutes each) covering:

• Reimbursement vs. Indemnity
• Potential tax implications of indemnity LTC policies
• Who really wants to know where the cash goes, and the burden that can create for families
• How direct-billing reimbursements can simplify the claims experience

If you’ve never looked at this discussion through a consumer’s lens, these videos may change how you approach conversations with advisors requesting indemnity quotes.

**One suggestion: watch all four videos but pay close attention to Video #3. It highlights a question every advisor should consider: when care begins, who is actually carrying the burden?