The elimination period of long-term care insurance is 30, 60, or 90 days at the time you purchased your policy. Most policies allow you to choose an elimination period of 30, 60, or 90 days at the time you purchased your policy; and during the period, you must cover the cost of any services you receive. Some policies specify that in order to satisfy an elimination period, you must receive paid care or pay for services during that time.
What is an Elimination Period in a Long-Term Care Insurance?
An elimination period (EP) in a long-term care insurance policy is the waiting period or number of days that you are considered “benefit eligible” and typically receiving care, but before you start to receive payment for services.
During this elimination period in a long-term care insurance, you must self-fund your long-term care (LTC) costs before benefits can begin. Your EP is determined at the time you purchase your policy. This waiting period could be 0 days up to 365 days. The most common EP is 90 days, although some carriers have a zero day EP for home care with 90 days for facility care.
What is Benefit Eligible?
Benefit Eligible means you are either physically or cognitively impaired and not both.
Physical impairment means you need substantial assistance with at least 2 out of the 6 activities of daily living (transferring, toileting, bathing, dressing, eating, and continence).
Cognitive impairment means you have a deterioration or loss in mental capacity, which requires substantial supervision to protect yourself or others from threats to health and safety. Alzheimer’s disease is an example of a cognitive impairment.
Since 1997, Tax-qualified policies sold will require one of these two “benefit triggers,” mentioned above for benefits to be paid out.