Long Term Care Certification Practice Test

In a long-term care policy, the elimination period is similar to?

1. Deductible

2. Co-pay

3. Out-of-pocket maximum

4. Annual premium

The correct answer is: Deductible

The elimination period in a long-term care policy is akin to a deductible. This period refers to the time frame before the insurance benefits begin to pay out after the insured has initiated a claim. Essentially, the elimination period is similar in function to a deductible in health insurance, where the insured must pay for a certain amount of health care services before the insurer starts to cover costs. During the elimination period, individuals are responsible for their expenses, just as they would be responsible for costs up to their deductible amount. Once the elimination period is satisfied, the policy begins to provide coverage for long-term care services as outlined in the policy terms. Understanding this concept helps in grasping how long-term care insurance works and prepares individuals for the financial aspects of their care needs before the policy benefits kick in.