In a long-term care policy, the elimination period is best described as

• A. The daily benefit amount
• B. The total benefit maximum
• C. The duration of coverage for care in a home setting
• D. The waiting period before benefits begin

Answer: (D)

The elimination period is the waiting period before benefits begin. In a long-term care policy, you choose a number of days you must incur covered care expenses before the policy starts paying. During that time you cover costs out of pocket. Once the elimination period passes while you’re in qualifying care, the policy then pays Benefits at the agreed daily amount, up to the policy’s limits. This setup helps lower premiums. The other features describe different aspects: the daily benefit amount is how much pays per day; the total benefit maximum is the overall cap; and the setting of care (home vs. facility) pertains to where benefits can be used, not when they start.