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a living. There are different factors that go into the various types of policies, all of which we discuss. Long-term care insurance covers the costs associated with nursing homes, in-home care, and other forms of long-term care. Both supplementing an income and paying for long-term care are vitally important aspects to the financial plan- ning process. By planning ahead for each of these events, you cover yourself and help keep on track for your financial goals. Think about it. If you have this goal of accumulating wealth and work very hard to reach this goal, would you want something to happen to derail your plans? One of the reasons we include this type of protection planning is to supplement the investment process. As a financial planner, I hate to see when someone has worked very hard to accu- mulate money, only to see all that hard work wiped out by an acci- dent or the need for long-term care. Both of these can be extremely expensive, even in the short-term.

Of course, I’ve heard every excuse in the book for not wanting to purchase either disability or long-term care insurance. But I’ve also seen what’s happened when the person who needed it didn’t have it. So, we touch on some these excuses and the reasons why they are just excuses, not actual reasons.


Both disability and long-term care insurance have elimination, or wait- ing, periods. These are periods of time that must elapse before any type of benefit is paid. These can range between the different types of poli- cies and insurance companies offering them; however, normal elimi- nation periods are either 30 or 90 days. Some types of plans allow you to choose how long you want your elimination period to be. The longer the waiting time, the lower the premium usually is.

Another important aspect to elimination periods is that, typically, once you have satisfied it once, you won’t have to do it again. There- fore, if you become disabled and have a 30-day elimination period before your coverage begins to pay benefits, you will only have to wait that one 30-day period. If you were to go back to work after a few months and then became disabled again, your benefits would begin immediately, and you wouldn’t have to wait for those 30 days.

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