Presented by Brian Leising inding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.

Premium Payments	Benefit Qualification	Benefit Amount
Pf Payment Frequency		Pa Payment Amount
Lg Lapse Guarantee	Tc Tax Code	Pm Payment Method
Wp Waiver of Premium	Ep Elimination Period	If Inflation

Element 7 – Payment method Insurance companies pay extended care benefits via one of two methods: reimbursement or indemnity. With the reimbursement model, the company either pays the insured’s health care providers directly or reimburses the insured upon proof of care expenses. The indemnity model offers the client a lump sum payment without having to provide an exact accounting of expenses. The insured may use the money however they wish. Some extended care expenses may fall outside the realm of traditional services. Maybe they wish to compensate a neighbor or loved one for providing care. The money could also be used to fly a loved one across the country, or for their hotel and meals while visiting. If the clients’ expenses fall below the indemnity benefit, they could request a lesser amount, save or invest the extra dollars. Look for Element 8 – Inflation in August.