Over the years the 90 day elimination period has become the gold standard for LTCi policies. There are variations out there such as the zero day home health care rider or some plans allowing you to buy down the elimination period to 60 or 30 days however these can be costly to the client making most reductions in elimination period cost prohibitive.
“The first part of a claim always happens before the last part of a claim.” We use this logic when comparing a 3 year vs. a 5 year benefit but the same can be said for the elimination period. That first 90 days of a LTC claim can be hugely stressful for all involved. Eliminating the elimination period could be just the solution to make it easier on all.
The costs for this can be relatively low if you consider a two product solution…. Add a Short Term Care Plan!
A recent case renewed my love for Short Term Care (STC). The clients liked their LTC plan presented, was good with the cost, but wanted a shorter elimination period. Quoting out the options the cost from moving to a 60 day elimination period with the presented plan was the same cost as eliminating it entirely with adding a 100 day STC plan.
You will do your clients a favor by considering and presenting a two product solution to their LTC needs, especially for those who question the 90 day elimination period.
Contact your LTC representative and ask them to show you how for your next client.
