How Long is Your Elimination Period?

Your policy’s long term care insurance elimination period is just as important as the amount of benefits that you’re supposed to receive, period of coverage, and inflation protection as it determines your annual premium and it’s a reality check on your current assets.

The elimination period, which is also known as the waiting period in the insurance industry, starts the moment a certified care provider or medical practitioner recommends or endorses you for long term care (LTC).

In this period of time you have to pay for all the expenses that you would possibly incur from acquiring care in a nursing home, an assisted living facility, or in the confines of your home. Insurance companies let the buyers pick the number of days that they are willing to foot their LTC expenses and the choices range from 30, 60, 90, 180, to 365 days.

There are other insurance firms that offer no elimination period so that the insured can receive his benefits immediately after a benefit triggers occurs. Policies with no elimination period, however, are very expensive.

Now a shorter waiting period will equate with a higher annual premium while the longer it is the smaller is one’s premium.

According to LTCI specialists, by choosing a longer waiting period you are less likely to run short of insurance benefits since you’ll be footing your LTC bills for a certain period of time. The only downside to a long elimination period is the possibility of running short on funds.

That said, you have to check your nest egg and other financial resources before deciding on the length of your policy’s elimination period. Once you have agreed on a specific number of days for your waiting period and signed the policy which stipulates this, there is no turning back. You have to satisfy that number of days or else you will never receive your LTCI benefits.

Long Term Care Insurance Elimination Period

Most insurance companies require the insured to satisfy his waiting period only once but there are others that use a different system in calculating the days on which the policyholder has availed services.

You have to discuss the elimination period of your LTCI policy with your insurer thoroughly to avoid confusion and argument in the future which might even result in a legal action.

Your insurer has to be also clear in the aspect of care provider. Ask if it’s allowable to receive care from family members or friends because if you’re only supposed to receive care from a licensed caregiver and you did not comply with this, your benefits will not be bestowed even after you have completed your elimination period.

In choosing the elimination period don’t just be particular about the amount of premium that you have to settle yearly. See to it that your waiting period will conform to the total amount of your assets. If you’re going for a one-year benefit period, ask yourself first if you have $36,480 put away to cover your expenses on a home health aide.

In case you wind up in a nursing home two months from the time you qualified for care, are you confident that you can pay out $66,357 for 10 months given a daily rate of $219?

You have to study a lot of areas before deciding on your long term care insurance elimination period as this involves your finances. It’s best to talk this over with your family and to seek advice from a licensed LTCI representative.