This is the last in a three part series covering the benefit selections required when purchasing a long term care (LTC) insurance policy from any carriers. The first installment focused on the selection of your maximum monthly benefit, the second covered the selection of the length of your benefit period, and this final post will address my recommendations for your elimination (deductible) period.
An elimination period is the number of days that you will be responsible to pay for care before your policy will begin paying. This period begins once your doctor has certified that you are eligible to begin receiving benefits based on your physical and/or cognitive state.
Your options in choosing an elimination period are 0-365 days, in varying increments. The most common elimination period selected is 90 days. The elmination period does not have to be consecutive days but rather can be cummulative. To determine what you should select, I wouldn’t advise going higher than 90 days but do suggest asking your broker for a rate comparison of a 90 versus 30 or 60 day deductible before making a decision.
In 2008, in the worst case scenario if you need care and were responsible for the bills for 90 days it would (on national average) cost you about $20,000. With care cost expected to double in the next 20 years, that same 90 days could cost you $40,000. Balance these estimates with the montly premium comparisons (of 30, 60 and 90 days) to determine the circumstances with which you are most comfortable.
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