Indemnity vs. Reimbursement: What Really Matters

Indemnity vs. Reimbursement: Why the Claims Experience Matters More Than the Check

When long-term care (LTC) solutions come up in planning conversations, it's common for advisors to request indemnity-style benefits, reasoning that clients want the flexibility to receive cash and use it however they see fit. It's a fair assumption on the surface. But it's worth pausing to ask: is this really what clients are asking for, or is it an assumption advisors are making on their behalf?

Reframing the Conversation

Most consumers aren't familiar with the term "indemnity," and even fewer are thinking about it in the abstract. What they are thinking about, often deeply, is not wanting to become a burden on their families. That distinction matters. A policy that simply issues a check, without additional support, can leave families responsible for coordinating care, researching providers, managing schedules, and handling paperwork during an already difficult time. The benefit payment may be flexible, but the burden of administration doesn't disappear.

This is where the design of a carrier's claims process becomes just as important as the product's underlying features.

A Different Approach to Claims Support

OneAmerica has built its Care Benefit Concierge program specifically to address this gap. Claims are managed in-house, and each family works with a dedicated professional who helps guide them through the process from initial filing through ongoing care coordination. Rather than leaving families to navigate the healthcare system on their own, this model pairs the financial benefit with hands-on support.

To help advisors bring this perspective into client conversations, OneAmerica has also released a series of short, consumer-facing videos (roughly two minutes each) covering topics including:

• The practical differences between reimbursement and indemnity structures

• Potential tax considerations tied to indemnity-based LTC policies

• The real question behind "who wants to know where the cash goes": the burden that oversight can place on families

• How direct-billing reimbursement models can simplify the overall claims experience

Advisors who regularly field indemnity requests may find particular value in Video #3, which poses a question worth bringing into every LTC discussion: when care actually begins, who ends up carrying the load?

You can view the full video series here: Consumer Approved Short Videos

Product features matter, but the claims experience often matters more. When a client needs care, having a knowledgeable guide alongside the benefit itself can be just as valuable as the payout.

Upcoming Enhancements to Asset Care

In addition to this claims-focused conversation, OneAmerica is rolling out several updates to its Asset Care product line effective September 21, giving advisors more ways to help clients put qualified assets to work for LTC planning:

• A new 3-year base policy option will be available across all Asset Care funding designs.

• Expanded Qualified Funds solutions will include new 5-pay and 20-pay options, offering greater flexibility for strategies involving inherited IRAs, retirement income planning, and tax-efficient asset repositioning.

These changes are designed to widen the range of planning scenarios Asset Care can support, giving advisors more precise tools for matching funding strategies to individual client goals. The updated software is scheduled to go live the Monday following this release, and supporting materials on the changes will be made available at that time.

What This Means for Our Partner Agencies

Whether you're revisiting how you position indemnity versus reimbursement with clients or looking to incorporate the upcoming Asset Care enhancements into your planning conversations, these updates offer timely opportunities to strengthen the value you bring to your book of business.

For more information on OneAmerica's Care Benefit Concierge program, the Asset Care updates, or supporting materials as they become available, visit The Brokerage Inc. website or reach out to your dedicated representative directly.