So, you’ve planned ahead, secured a long-term care insurance (LTCI) policy, and now it’s time to actually use it. But now you’re hearing about this elimination period before benefits kick in, and it’s feeling like an unnecessary hurdle. If you weren’t expecting this, you’re not alone. A lot of families don’t realize they’ll need to cover care costs out of pocket for a certain period before their insurance starts paying.
What Is the Elimination Period?
The elimination period is basically the waiting period before your LTCI benefits begin. It’s like a deductible, except instead of paying a certain amount upfront, you have to cover a set number of days of care out of pocket on your own before insurance steps in. Depending on the policy, this can be 30, 60, 90, or even 100 days. Some policies count only the days care is actually received (service days), while others count consecutive calendar days from when care starts (calendar days). Either way, the bottom line is the same – you need a plan for how to manage care in the meantime.
Final Thoughts
The elimination period catches a lot of families off guard, but having a plan in place makes a huge difference. The key is knowing exactly what your policy requires and figuring out how to cover care costs until benefits start. Some families use savings, others get creative with part-time home care or family support. The biggest mistake is waiting until the last minute to figure all this out. If you or a loved one has long-term care insurance, start planning now so that when the time comes, there’s a smooth transition into care.
Most people wait until the very last minute to file a claim on their long-term care insurance, only to find out they have to get through the elimination period first. Depending on the source, only about 50% of individuals with LTCI actually end up using it. The common mindset is, “I’ll only activate the claim when it’s downpouring.” Reality is, it’s been raining for years. If you need questions regarding your long-term care insurance, send a message to Paolo’s email paolo@familycareplacement.com!