Save More With An Elimination Period

Aside from your maximum benefit amount and maximum benefit period, your long term care insurance elimination period is also an important determining factor of your annual premium. One month waiting period equates to a higher premium while six months to one year means youll be enjoying a low premium.

This elimination period or waiting period enables everybody to afford a long term care insurance (LTCI) policy. Take it as a discount on ones annual premium, whereas choosing a policy without a waiting period will subject him to a very high price. The latter may be very ideal but very expensive, as well.

Most insurance companies would require only one waiting period but there are others that require it every time you claim for benefits. Having said that, it is important to conduct a background check on the company from which you intend to buy your insurance because you might wind up spending more than youve expected.

Now if youve already done that and you are, in fact, already in the process of negotiating for your LTCI policy, ask your agent the prerequisites that come with the waiting period. You have been made to understand that within this period you will be responsible for paying all the expenses that you would incur from home care, assisted living, or a nursing home. But were you also told that receiving care from a family member will not make you eligible for benefits afterwards?

Majority of, if not all, all insurance companies marketing LTCI strictly dont count family members as legit caregivers even if you pay your children or spouse to take care of you. So to ensure that you get to claim your benefits afterwards, be sure to comply with what is stipulated on your policy in terms of waiting period.

Preparing for Your Long Term Care Insurance Elimination Period

Waiting periods range from 30 to 356 days, but there are some companies that offer a 20-day waiting period.

If you have abundant supply of resources, you can get the shortest waiting period by all means. However, if you live on a fixed budget every day it is pointless to rush the benefits. It will roll in, dont worry. But before it does you have to satisfy your elimination period first.

Now to be able to afford your long term care (LTC) expenses during the elimination period you should allot a budget for this purpose only. For example, if you have purchased a policy with a 90-day elimination period you have to know the type of care that youll be receiving in this three-month period.

If youre considering in-home care canvass the rates of home health aide services in your area and homemaker services, as well. Does your instinct tell you that youll gradually move to an assisted living facility after two months? If so, you can check out the rates of that assisted living facility situated not far away from your home.

Part of LTC planning is a nest egg that continuously grows not only to fund your LTC in compliance with your long term care insurance elimination period, but also to keep your family financially secured.