How Long Term Care Insurance Elimination Period Works
One of the most important details that an individual must look for in his LTC plan contract is the so-called long term care insurance elimination period. This refers to the number of days after the original effective date of his insurance policy in which the policy owner must be getting other primary service aside from hospice care, and must also be chronically ill before some benefits can be considered payable.
An individual can freely choose the number of his policy’s elimination period ranging from 0 days up to as long as 730 days. The policy would then start paying the policyholder after his desired elimination period. For example, the insured person has 90 days elimination period, the policy would only start paying or covering the costs of LTC services on the 91st day that the insured person needs to get LTC-related services.
It is important that an individual picks the most suitable number of days for his elimination period so that he can avoid paying so much amount of money for the time when his policy would not cover his LTC needs. But it is also important to note that the longer the elimination period, the lower monthly premiums the policy will have.
Also, the costs of LTC services on the particular state or location where the person opts to receive his policy benefits will also matter when it comes to deciding on how long his long term care insurance elimination period would be.
It is a known fact already that not all states or regions in the United States have the same amount of LTC services, although the services and facilities that they provide are almost the same. If the LTC costs are too high for an individual to pay it from his own pocket, then he might want to get shorter elimination period, but the risk of paying for more expensive monthly premiums is higher.
You see, planning and choosing an LTC insurance plan is not that easy. Aside from the financial aspects that come along with it, the need to be able to choose and have the right and most suitable option will greatly help the individual in easing his financial burden and enjoy the benefits of his policy at the same time.
To give you an idea, the most common, or some considers it to be the “standard” elimination period, is 90 days. This is because of the shorter time that the policy owner would pay for some of the services that he will incur while having a good savings costs when it comes to the monthly premiums. But remember that the decision would still be with the insured person and his ability to pay the costs of his LTC insurance plan.
LTC insurance policies are really complicated especially to those who are not familiar with how it works. There is still a lot of information regarding long term care insurance elimination period that one has to know. To further understand this, you may contact you preferred insurance agent and ask anything that you would want to know about it.
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