| Long-term care insurance has a reputation for | | | | it starts on the day you begin to need care and |
| being expensive, especially for people who have | | | | every day counts, even if you do not receive |
| waited until they were in their 60's or 70's to | | | | care every subsequent day thereafter. Other |
| investigate coverage. But there are ways to | | | | companies use a "days of service" method, |
| lower your premium amount. Also known as the | | | | whereby it must be a day that care was actually |
| deductible, the elimination period is similar to | | | | received. In the overall picture of LTC insurance |
| deductibles with other types of insurance | | | | policy design, the method used to satisfy the |
| coverage, such as your automobile or | | | | elimination period is a minor consideration. |
| homeowner's insurance. However, instead of being | | | | In determining the elimination period most |
| defined as a dollar amount, with LTC insurance it | | | | appropriate for your situation and how that |
| is defined in days between the time you begin to | | | | translates into out-of-pocket dollars, consider two |
| need care and the time the policy begins to pay | | | | important points: |
| benefits. For example, if you need long-term care | | | | 1. Your risk tolerance philosophy and whether or |
| services, and you had purchased coverage with a | | | | not you believe in co-insuring a small or large |
| 100-day elimination period, on the 101st day of | | | | amount of your potential long-term care costs. |
| your need for care, your "deductible" would be | | | | 2. The average cost of care in your area. Use this |
| satisfied and the policy would begin to pay the | | | | figure to calculate your out-of-pocket dollar risk |
| benefit amount. | | | | for various time periods by multiplying it by the |
| The elimination period is the most practical way to | | | | average cost of care per day in your area. |
| save money on your premium. For example, a | | | | If you view LTC insurance as a highly |
| period in the range of 100 days can save a | | | | catastrophic type of insurance, consider a time |
| significant amount of premium dollars over a | | | | period higher than 100 days. |
| lesser time period. | | | | True long-term care is needing assistance for a |
| The more days that you are willing to pay for | | | | period beyond 100 days. Short-term care, care |
| your care out of pocket before your policy begins | | | | needed for less than 100 days, can normally be |
| paying benefits, the lower your premium rate. | | | | paid for without significant hardship to the person |
| You can choose a variety of elimination periods, | | | | receiving the care or their family.In certain |
| ranging from a zero-day - which would pay | | | | instances, a percentage of short-term care may |
| benefits from the first day you needed long-term | | | | even be paid for by your health insurance or |
| care services - to as high as 3 years or longer. | | | | Medicare. For these reasons, always concentrate |
| There are various methods for calculating how | | | | your premium dollars on true long-term care. This |
| the elimination period is satisfied. Some insurance | | | | means choosing an elimination period of at least |
| companies use a calendar day method, whereby | | | | 100 days. |