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