If Melvin has a long-term care policy with a 30-day elimination period and is confined to a nursing home for 9 months, how much will his policy pay?

In a long-term care insurance policy, the elimination period, also known as the waiting period, is the time that must pass before benefits are payable. Since Melvin has a 30-day elimination period, he will not receive benefits for the first 30 days of his nursing home confinement.

Melvin is confined for a total of 9 months, which is equivalent to 270 days. Since the first 30 days do not qualify for benefit payments, the insurance policy will start paying after this period, covering the remaining 240 days of his stay in the nursing home.

To determine the total benefit amount for the 240 days, information about the daily benefit amount is needed. If we assume that the policy pays $100 per day, then the calculation would be:

240 days × $100/day = $24,000.

This calculation matches the answer choice indicating that the policy would indeed pay $24,000, reflecting the total benefits accumulated after the elimination period. This demonstrates an understanding of how long-term care insurance policies typically operate regarding elimination periods and benefit calculations.