Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Health InsuranceMedium
A Florida resident is reviewing a proposed Long-Term Care (LTC) insurance policy. The policy includes a provision stating that benefits will begin after the insured has received covered services for a specified period, during which time the insured must pay for their own care. This period is known as the:
- AElimination Period
- BProbationary Period
- CBenefit Period
- DGrace Period
Show answer & explanationAnswer & explanation
Correct answer: A. Elimination Period
The Elimination Period (also known as the waiting period) in an LTC policy is the time after a qualifying event (like needing care) during which benefits are not paid, and the insured must cover their own expenses.
Why the other options are wrong
- B. Probationary Period is a waiting period for new employees or for certain pre-existing conditions before coverage begins.
- C. Benefit Period is the maximum length of time for which benefits will be paid under the policy.
- D. Grace Period is the period after a premium due date during which a policy remains in force without payment.
Long-Term Care Elimination Period
A deductible period in a Long-Term Care insurance policy during which the insured must pay for their own care before policy benefits begin.
- Also known as a waiting period.
- Can range from 0 to 180 days or more.
- A longer elimination period typically results in lower premiums.
Memory trick: Eliminate the wait before benefits elevate.