The elimination period, also known as the waiting period, is a specific time frame that must pass before the benefits of a long term care insurance policy become payable. During this period, the policyholder is responsible for covering their own long term care expenses. Once the elimination period is over, the insurance company will start paying benefits according to the terms of the policy.
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 to 90 days, although longer periods may be available. It's important to note that the longer the elimination period, the lower the premium for the policy may be.
During the elimination period, the policyholder is responsible for paying for their own long term care services, such as nursing home care, assisted living, or home health care. It's crucial to carefully consider the length of the elimination period when choosing a long term care insurance policy, as it will determine how long you need to cover your own expenses before the insurance benefits kick in.
It's also worth noting that some policies offer a zero-day elimination period for certain types of care, such as home health care. This means that benefits can start immediately without any waiting period.
Overall, the elimination period is an important aspect of long term care insurance that policyholders should understand. It's the initial period during which the policyholder is responsible for their own long term care expenses before the insurance benefits become payable.