Questions: What is one outcome of James' decision? He will qualifity for Medicaid. The cost of his insurance premium will decrease. His benefit period will be shortened. His insurance payout will increase.

His insurance payout will increase.

This option is unlikely to be directly related to his decision to extend the elimination period on his long-term care insurance. Medicaid eligibility is generally based on income and asset levels, not on decisions related to private insurance policies.

The decision to extend the elimination period typically does not affect the premium of an existing insurance policy. Premiums are usually set at the time of purchase and are based on factors like age, health, and the terms of the policy.

Extending the elimination period does not directly affect the benefit period. The elimination period is the time a policyholder must wait before benefits begin, while the benefit period is the duration for which benefits are paid once they start.

By extending the elimination period, James is effectively delaying when he can start receiving benefits. This decision can lead to a higher payout later, as he is using his own funds initially and preserving the insurance benefits for future use. This is a common strategy to maximize the total benefits received over time.