The elimination period in long term care insurance refers to the waiting period that a policyholder must satisfy before they can start receiving benefits from their insurance policy. During this period, the policyholder is responsible for covering their own long term care expenses. The length of the elimination period can vary depending on the policy and is typically measured in days. The purpose of the elimination period is to prevent individuals from purchasing insurance coverage only when they are already in need of long term care. By having a waiting period, insurance companies can ensure that policyholders have a genuine need for long term care and are not simply trying to take advantage of the benefits.
During the elimination period, the policyholder is responsible for paying for their own long term care expenses. Once the elimination period is over, the insurance policy will start providing coverage and the policyholder can begin receiving benefits. It's important to note that the elimination period is not the same as a deductible. A deductible is a fixed amount that the policyholder must pay out of pocket before the insurance coverage kicks in, whereas the elimination period is a waiting period.
The length of the elimination period can vary depending on the policy and the individual's preferences. Common elimination period options range from 30 days to 180 days, although longer elimination periods may be available as well. Choosing a longer elimination period can help reduce the cost of the insurance policy, as policies with longer elimination periods tend to have lower premiums. However, it's important to carefully consider one's financial situation and ability to cover long term care expenses during the elimination period before selecting a longer elimination period.
It's also worth noting that some long term care insurance policies offer a zero-day elimination period for certain conditions, such as cognitive impairment or Alzheimer's disease. This means that the policyholder can start receiving benefits immediately for these specific conditions without having to satisfy an elimination period.
In summary, the elimination period in long term care insurance is the waiting period that a policyholder must satisfy before they can start receiving benefits. It serves as a way to ensure that individuals have a genuine need for long term care and are not simply trying to take advantage of the benefits. The length of the elimination period can vary depending on the policy and choosing a longer elimination period can help reduce the cost of the insurance policy.