LTC Elimination Period Cost Calculator
LTC insurance includes elimination period — days you self-pay before benefits begin. Longer elimination period = lower premium but more out-of-pocket exposure. Trade-off matters: 90-day elimination saves 30-40% on premium, but means $30-60K self-pay before benefits kick in. Plan elimination period based on liquidity and risk tolerance.
How Elimination Period Works
From first qualifying day of care (you meet ADL/cognitive triggers), the elimination period must elapse before insurance pays. 90-day elimination = 90 consecutive days of qualifying care before benefits start. Most plans require continuous care — gaps reset the count in some plans. 'Calendar day' counting (most common) means 90 calendar days; 'service day' counting means 90 days you actually receive care.
Premium Savings Math
Industry pricing: 0-day premium is 1.5-2x 90-day. 30-day saves 15-25%. 90-day saves 30-45%. 180-day saves 45-60%. Premium savings compound over 15-25 years of paying. Example: $1,000/yr savings from going 0→90 elim, paid for 20 years = $20K savings, vs $30-50K self-pay if you make a claim. Math favors longer elimination periods for healthy applicants.
Liquidity Planning
Set aside elimination-period × daily cost in liquid reserves (money market, T-bills). For 90-day elim at $400/day = $36K dedicated reserve. Don't double-count: this is in addition to general emergency fund. If you can't fund this reserve, choose shorter elimination period despite higher premium — illiquidity during care crisis forces bad decisions.
Source: NAIC LTC Insurance Experience Reports 2024, Society of Actuaries LTC Industry Study 2024. Last updated: May 2026.