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4 Reasons why a 90-day Elimination Period usually makes the most sense

4 Reasons why a 90-day Elimination Period usually makes the most sense:

  1. A 30-day Elimination Period usually costs about 20% more than a 90-day Elimination Period.  If you’re going to spend 20% more premium, you would be better off buying 20% more Daily Benefit.  Would you rather have a policy that pays $200 per day starting on day 31  –OR–  a policy that pays $240 per day starting on day 91?  The premium is about the same for each.  I’d pick the latter.
  2. If you need acute care (e.g. short-term rehabilitative care) most medical insurance policies (including Medicare and Medigap policies) can pay up to the first 100 days in a skilled nursing facility.  With many of the better LTCi policies, those days of care paid for by your medical coverage can count towards fulfilling your Elimination Period.
  3. If you need chronic care, (due to Alzheimer’s, Parkinson’s, Rheumatoid Arthritis, etc…) your care starts off slow and you’ll gradually need more and more care.  You may only need a few hours of care each day for the first 90 days with a minimal out-of-pocket expense.  Alternatively, some policies would allow home care provided by a family member to fulfill the 90-day Elimination Period.
  4. Federal law requires that a tax-qualified long-term care policy pay benefits only when your care is expected to last 90 days or longer.  If your doctor certified that you were expected to recover in 89 days or less, a policy with a 30-day Elimination Period would not pay any benefits.Extra Tip:  Some policies offer a zero-day Elimination Period for care at home. With these policies, the Elimination Period is waived for care at home. Some policies include this feature automatically. Other policies make this available for an extra premium.  With some of these policies, the care received at home can fulfill the entire 90-day Facility Elimination Period.  
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About Scott A. Olson

Scott A. Olson, is the author of “The Guidebook for Making Long-Term Care Insurance Easier.” He is a licensed insurance agent and has specialized in long-term care insurance since 1995. He is licensed to sell long-term care insurance in over 40 states. Scott was born and raised in New Jersey and attended Rutgers University. Scott was a caregiver for a close relative for two years. That personal experience has made him acutely aware of how to help his clients design and choose a long-term care policy that will benefit them when they need it the most. Scott and his wife Carolyn live in Redlands, California. Scott and Carolyn have four sons.

One comment on “4 Reasons why a 90-day Elimination Period usually makes the most sense

  1. Scott, all very good reasons to find the most cost effective plan design for the client. Many commentators oppose LTCi because of the out-of-pocket premiums. When we as agents/brokers explain these alternatives, our value and the value of the protection increases dramatically!
    Phil McDonough. CLTC

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