As your parents age and their health becomes a concern, you may wonder how to ensure that they receive the care and treatment they need. One of the most popular options, of course, is a long-term care facility. A residential facility like this can provide your loved one with the resources and assistance needed, but for many families, the expenses may be cost-prohibitive.

Some insurers offer long-term care insurance that can make funding attainable. If you are considering investing in such a policy, though, there are a few things you should know. Consider the meaning and importance of the following three terms relating to long-term care insurance:


Like any other insurance policy, a long-term care policy will have a deductible that policyholders must cover before any benefits will be paid out. Unlike other insurance policies, though, it is unlikely that you will be able to reduce this sum over time. According to the American Association for Long-Term Care Insurance, though, the premium you pay may be tax deductible, which would ease the financial burden of the policy’s expense.

Payout duration

The payout duration of the policy refers to the time period that it is applicable to. Different policies offer different payout durations, so this depends on how many years of care you anticipate funding and within what period of time your loved one is eligible for coverage. You should consider the average length of stay in a long-term care facility and select a policy that will ensure coverage for that period of time.

Elimination period

Long-term care coverage typically includes an elimination period that patients must meet before they are eligible to claim their policy’s benefits. If your parent requires a two-month stay in a long-term care facility, for example, your policy will stipulate what portion of time is covered. The elimination period is the minimum number of consecutive days of care that must be required for benefits to be claimed.