What events must occur before the policy begins paying benefits?
• Some older policies require a hospital stay of at least three days before benefits can be paid. This requirement is very restrictive; you should avoid it. • Most policies have a “waiting period” or “elimination” period. This is a period that begins when you first need long-term care and lasts as long as the policy provides. During the waiting period, the policy will not pay benefits. If you recover before the waiting period ends, the policy doesn’t pay for expenses you incur during the waiting period. The policy pays only for expenses that occur after the waiting period is over, if you continue to need care. In general, the longer the waiting period, the lower the premium for the long-term care policy. How long will benefits last? A benefit period may range from two years to lifetime. You can keep premiums down by electing coverage for three to four years—longer than the average nursing home stay—instead of lifetime. Indemnity vs. Reimbursement Most long-term care policies pay on a r
Related Questions
- What is the risk of the shared Earthquake funds becoming exhausted? What happens if several catastrophic events occur during the policy period?
- Is it possible to avoid paying one or more premium payments in whole life and still maintain policy benefits?
- Under what conditions will the policy begin paying benefits?
