What is the typical waiting period for Long-Term Care insurance to begin coverage?

Long-Term Care insurance policies often include a waiting period, commonly referred to as an elimination period, before benefits begin. A 90-day waiting period is a standard timeframe in many policies. This means that insured individuals generally need to pay for their long-term care expenses out of pocket for 90 days before the insurance coverage activates. This waiting period can help insurers manage their costs by reducing the frequency of small claims.

This timeframe allows policyholders to have some flexibility. Some may want a longer waiting period to potentially lower their premium costs because the longer the waiting period, the less likely the insurer has to pay benefits immediately. Moreover, this structure encourages policyholders to plan for their care needs and possibly utilize other resources before their long-term care benefits kick in.

Immediate coverage, a short 30-day waiting period, or a lengthy 180-day waiting period are less common in practice, as most insurers opt for a 90-day elimination period for a balanced approach in managing claims and maintaining affordable premiums for policyholders.