The elimination period in long term care insurance refers to the waiting period that a policyholder must satisfy before the insurance benefits start to be paid out. It is similar to a deductible in other types of insurance policies. During the elimination period, the policyholder is responsible for covering their own long term care expenses. Once the elimination period is over, the insurance benefits kick in and the policyholder can start receiving coverage for their long term care needs.
The length of the elimination period can vary depending on the policy and is typically measured in days. Common elimination period options range from 30 days to 180 days, although longer elimination periods may be available. It's important to note that the longer the elimination period, the lower the premium for the insurance policy.
During the elimination period, it's crucial for individuals to have a plan in place to cover their long term care expenses. This can include using personal savings, relying on family support, or utilizing other resources. It's important to carefully consider the length of the elimination period when choosing a long term care insurance policy, as it can have a significant impact on the out-of-pocket expenses that need to be covered before the insurance benefits begin.