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LTC Insurance Blog
Simplifying the process of understanding Long Term Care, and helping you decide if Long Term Care insurance is right for you.
Long Term Care Elimination Periods
Just like your health and auto insurance, LTC policies have a deductible. For Long Term Care policies, the deductible is called the Elimination Period. This is the period of time your Long Term Care costs will be paid out of pocket before your benefits kick in.
When purchasing a Long Term Care policy, you will choose your elimination period. Common options are 20 days, 30 days, 60 days and 90 days. Choosing a shorter elimination period will result in a higher premium while a longer elimination period will result in a lower premium. When making decisions about which elimination period you will choose, it is very important to factor in your ability to pay for care out of pocket until the elimination period is satisfied.
Some insurance companies allow you to decide how you want days to be credited toward your elimination period. The Service Days option only credits you for days you actually receive care and is usually the less expensive option. Keep in mind; it may take you longer to satisfy your elimination period if you are only receiving care intermittently. The Calendar Days option starts counting the days as soon as you start receiving care and counts each day after, irrespective of whether or not you received care that day. This is usually the more expensive option but it does ensure that your elimination period will only last the pre-determined number of days you have chosen.
Many insurance companies also offer a Zero Day Home Care Elimination Period rider. This means your benefits will kick in on the first day you require care in your home. It will add to the cost of your policy, but since most Long Term Care is received at home, it may be worth considering if you are concerned about paying out of pocket during your elimination period.
If you have questions about Elimination Periods or would like more information about Long Term Care, please give us a call at 1-800-432-0091 or fill out our online form to receive a free rate comparison.