An indemnity-style benefit is any policy feature that pays a pre-set amount upon qualification rather than reimbursing actual bills. In life-LTC hybrids and stand-alone LTC, indemnity-style payments begin when the insured meets the contract's benefit triggers (e.g., inability to perform two activities of daily living or severe cognitive impairment) and any elimination period. Because payment is not tied to receipts, indemnity benefits can fund family caregiving, home modifications, or other supportive services, subject to policy definitions and tax rules for qualified long-term care benefits.

Case design compares reimbursement versus indemnity benefits. Where informal care is likely, indemnity simplifies claims; where professional services dominate, reimbursement can stretch benefits by matching actual invoices.