Margie Barrie, a veteran long-term care insurance (LTCI) agent, marketer and educator, has been writing articles about long-term care (LTC) planning and related issues for several years. Here she takes a question about elimination periods — when coverage holders who qualify for benefits can hope to start collecting benefits.
Q. I represent multiple LTCI carriers and need to explain to clients how the elimination periods work. For example, when do the calendar days start counting in the various policies?
A. Let’s start by using a scenario that we could hear from clients and their families: A policyholder has a debilitating stroke. On day 1 he goes to the hospital. On day 15 he goes to the rehab unit in the hospital. On day 30 he still needs considerable help bathing and dressing, so he is admitted to a nursing home for care.
When does the LTCI start paying benefits?
Be aware that carriers definitely differ in the method they use to count the calendar-day elimination period. It is important to show your clients how their specific policies work.
The following information was compiled by Ed Hutman, an agent in Rockville, Md., who agreed to provide it to “LTCI Insider.”
1. Genworth PC Flex 2 and Flex 3
“The elimination period is satisfied by days you are chronically ill, beginning with the first day you incur a covered expense.”
2. Life Secure