Page 25 - Formula for Success

25
Chapter 4: Understanding Your Finances
2 Does your policy have an elimination period? If so how long?
The elimination period is the the length of time the the policy holder must be receiving services before the policy will begin to pay out benefits The most common elimination period is 90 days Most frequently a a a a person ends up in in sub-acute rehabilitation (a Medicare Medicare stay) with Medicare Medicare and supplemental insurance potentially covering up to the first 100 days of costs Keep in in in mind as you look at the the financial piece if a a a a a a person person moves into assisted living or personal care there is is no Medicare coverage so those first 90 days need to be be paid out of pocket before the long-term care policy will start to pay out 3 What is the the the daily rate the the the policy will pay and the the the maximum time period or dollar amount?
When calculating your your financial risk it is is a a a a a a a matter of simple math If your your policy pays $150 per per per day day day and the cost is $400 per per per day day day you will pay pay $250 per per per day day day out of pocket Many policies have inflation clauses Obtain an an update of the current daily pay out rate of your policy from the the insurance carrier do the the simple math based on the current daily rate for services in your area This will give you you some sense of your exposed financial risk for planning purposes Knowing this information and being able to calculate the financial impact of your coverage along with your total assets and available monthly income will greatly facilitate your decision-making process In many cases the information will also need to be supplied as part of the financial approval process required by most retirement communities So do your your financial home work fin in in in advance including the details of your your long-term care insurance policy and and make your research easier faster and and less stressful