How Long Should You Wait For Your Ltci Benefits?

By Author: Chelsea Andrews
Total Articles: 25
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Planning your long term care (LTC) with a long term care insurance policy is well and good. Just be sure that you don’t take certain factors for granted such as your long term care insurance elimination period because you might end up with more out-of-pocket spending.

Your objective in buying an LTCI policy is to protect your money and other assets from being wiped out by the cost of care which is expected to double in 2025 before increasing fourfold in 2030. People with LTCI policies can receive care in their choice or choices of LTC facilities without thinking about the thousands of dollars that they have to pay later on.

On the other hand, those without an LTCI policy can probably self-insure for about a year then after that they’ll definitely turn to Medicaid because nobody’s money is ever enough for the cost of care, as this grows year after year.

For instance, a nursing home with an annual rate of $77,745 today will cost $81,632.25 next year taking the 5% annual inflation into account. So to avoid the unpleasant surprises that come with LTC costs, it’s better to start preparing yourself ...
... while you’re young, healthy and in a lucrative profession.

Now if you happen to be among those individuals who are seriously considering an LTCI policy, it is important to note that besides the maximum benefit amount there are other things that matter, too. No matter how big the total amount of your insurance benefits is, it may never land in your hands if you don’t satisfy the provisions of your policy with regards to the benefit triggers and elimination period.

Planning Your Long Term Care Insurance Elimination Period

Your policy’s elimination period, which is also known as the waiting period, pertains to the amount of time that you will pay for the LTC services that you acquire using your personal resources. This is prerequisite to receiving your LTCI benefits so if you fail to satisfy this part of your policy, you won’t be able to receive coverage.

Once a benefit trigger occurs, your policy’s elimination period immediately takes effect. Some companies require that you receive care for consecutive days otherwise you won’t be considered eligible to receive your LTCI policy’s benefits.

For example, if your policy states an elimination period of 60 days you have to receive care for 60 consecutive days in a nursing home or in another LTC setting to qualify for your insurance benefits. If you skip a day of care you may not qualify.

Some insurers, however, are not that strict. For as long as you’ve satisfied your elimination period your benefits will follow.

Most insurance companies offer five types of elimination period which are 30 days, 60 days, 90 days, 180 days, or one year. Your choice of elimination period will affect the premium of your LTCI coverage so if you choose a shorter waiting period your annual premium is higher but a longer one equates to a smaller premium.

While you’re in the process of putting together your LTC plan see to it that you discuss your long term care insurance elimination period with your LTCI agent thoroughly.

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