If you think that long term care insurance may be right for you and your situation, then it is important to consider exactly what kind of insurance is right for you. As discussed in a Forbes article titled, “What Are The Best Coverage Options For Long-Term Care Insurance?” the elimination period is an important criterion to consider before purchasing long term care insurance.
The elimination period is essentially the waiting period before benefits kick in. This initial period is usually a trade-off with insurance premiums – a shorter elimination period will ordinarily result in a higher premium and vice versa.
It may be advantageous to consider paying a lower premium because oftentimes nursing home stays can be short term. Also, Medicare may cover up to 100 days of skilled care in a nursing home so that long term care insurance may not be necessary during this time.
The Forbes article recommended an elimination period of about 60 to 90 days for those who have limited savings and cannot afford to pay after government benefits run out. However, if you can afford to pay for long term care for more than a few months, then a longer elimination period could save you money in premiums.