Life & Health Insurance Exam (National Portion)Policy Provisions, Options, and RidersMedium
A long-term care policy includes an 'Elimination Period' of 90 days. If the insured requires continuous care for 120 days, for how many days will the policy pay benefits?
- ANo benefits will be paid.
- B90 days
- C120 days
- D30 days
Show answer & explanationAnswer & explanation
Correct answer: D. 30 days
The Elimination Period (also known as the waiting period) is the number of days the insured must be confined or receive care before benefits begin. If the elimination period is 90 days and care is received for 120 days, the policy will pay for the remaining 30 days (120 - 90 = 30).
Why the other options are wrong
- A. Benefits will be paid once the elimination period is met and care continues.
- B. This is the elimination period, during which no benefits are paid.
- C. This would be the total duration of care, not the payable benefit period.
Elimination Period (LTC)
In long-term care insurance, the elimination period (or waiting period) is the number of days an insured must receive covered care before the policy begins to pay benefits. The insured is responsible for costs during this period.
- Deductible in terms of time, not money.
- Must be satisfied before benefits are paid.
- Can vary (e.g., 30, 60, 90 days).
- Longer elimination periods result in lower premiums.
Memory trick: LTC: Long Time Care, Elimination's the Start.