The elimination period, also known as the waiting period, is a specified period of time that must pass before the benefits of a long term care insurance policy are paid out. During this period, the policyholder is responsible for covering their own long term care expenses. Once the elimination period has been satisfied, the insurance company will begin to pay benefits according to the terms of the policy.
The length of the elimination period can vary depending on the policy and the insurance company. 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 policy is likely to be.
During the elimination period, the policyholder is typically required to pay for all long term care services out of pocket. This can include expenses such as nursing home care, assisted living, or in-home care. It's important to carefully consider your financial situation and ability to cover these costs before selecting an 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 the need for substantial assistance with activities of daily living. In these cases, the policyholder may be eligible to receive benefits immediately without having to satisfy a waiting period.
In summary, the elimination period for long term care insurance is a specified waiting period during which the policyholder is responsible for covering their own long term care expenses. Once the elimination period has been satisfied, the insurance company will begin to pay benefits according to the terms of the policy.