Paying for care
Elimination period
An elimination period is the waiting time in a long-term care insurance policy before benefits begin. It works like a deductible, but it is measured in days instead of dollars. Many policies let the buyer choose a period such as 30, 60, or 90 days when purchasing the policy.
Why it matters for your family
During the elimination period, the family pays for care out of pocket. Policies count the days in different ways. Some count only days when the person receives paid care. Others count any day the person meets the policy's benefit trigger. Picture a policy with a 90-day period that counts only paid service days. If care happens three days a week, the wait is longer than three calendar months. A common mistake is to miss this wording. Read the policy for the exact definition, and ask the insurer in writing how it will count days.
Source: acl.gov
Read more: 5 Myths about Long-Term Care
Related terms
- Long-term care insuranceLong-term care insurance is a private policy that pays for help with daily living when a person can no longer manage alone.
- Hybrid long-term care policyA hybrid long-term care policy combines life insurance or an annuity with long-term care benefits.
- Private payPrivate pay means a family pays for care directly from its own money.
- Activities of daily living (ADLs)Activities of daily living (ADLs) are the basic self-care tasks people do each day.
- Cost of home careThe cost of home care is the amount a family pays for in-home help.
- Life insurance with long-term care riderA life insurance policy with a long-term care rider lets the owner use part of the death benefit while alive to pay for qualified care.
