Elimination Period in Long-Term Care Insurance

 

Elimination period in long term care insurance is commonly referred to as deductible, or “waiting period” that the coverage starts to pay out the benefits. These are the number of days that the policyholder must pay out of his or her own money before the insurance takes over. This so-called deductible works the same as major medical insurance policies. The only difference is that instead of dollar amount you will pay for the initial expenses there are number of days required to shoulder your own care.

 

There are various provisions for elimination period set forth in policies and the state where you live. It’s important to know and understand everything stated in your policy to prevent problems in the future.

  What are the periods offered?

 

It’s rare to find companies offering zero-day elimination period these days. The period could be 30, 60, 90, 180, and 365 days, but these periods vary on the insurer. Elimination periods of 180 or 365 days are chosen only by policyholders with bulk assets of their own. In fact, the longer the elimination period you get, the lower the LTCi becomes. Even 90-day elimination period can put significant benefits on your assets that having no protection at all.

 

What is a Reasonable and Cost-effective Elimination Period?

Some financial planners using shorter and even zero elimination period. The shorter elimination period means the lesser expenses when the time comes for you to receive care.  However, shorter elimination periods can affect the premiums that you are going to pay in the long run. Most sales pitches say that longer elimination periods can save more on insurance premiums.

 

In deciding on which elimination period to purchase, many policy holders compromise the costs to the benefit it could give in the long run. Many consider using this insurance to avoid financial losses rather than focusing on future or current expenses.

The Smartest Thing You Can Do

 

What’s working with others or most people does not mean will work best on you. It’s always crucial to look at your situation and your own needs, rather than comparing with other people. In choosing the best elimination period, it is sensible to consider the costs that will be accrued for the care you may have to receive particularly the facility care. Once you have a clear quotation of daily facility care in your chosen institution, multiply that costs by the various elimination period choices, and from there, choose the most affordable. After you determined the best elimination period for you, allocate those savings for your care and allow them to increase value so they go along with the inflation.

There are ways on how to avoid the costly risks of elimination period:

-       Always review the terms of coverage in your policy. If there are things you can’t understand, never hesitate to ask questions from the agent regarding your concern

-       Secure funds for your out-of-pocket expenses and for the rest of your care as well

-       You may ask help from your friends, relatives, and family members to reduce the costs you’ll have to pay for a home health aide or a caregiver. If someone can bring you home-cooked meals or clean the house for you, then the need for other paid services will be reduced.

Some policies count your stay in Medicare/Medicaid licensed homes and rehabilitation facility. It would be better to ask your insurer on what paperwork is required to qualify for Medicare and Rehab visit counts