Long Term Care Certification Practice Test

What feature of a long-term care policy allows for continuous coverage without premium payments during a period of receiving benefits?

1. Renewable term

2. Waiver of premium

3. Flexible benefits

4. Guaranteed renewal

The correct answer is: Waiver of premium

The feature that allows for continuous coverage without premium payments while receiving benefits is known as the waiver of premium. This provision is crucial for policyholders who are in need of care and may find it financially burdensome to continue paying premiums during that time. When a policyholder qualifies for benefits under their long-term care policy, the waiver of premium automatically suspends the obligation to pay premiums, preserving coverage even while benefits are being received. This not only aids in financial management during a difficult time but also ensures that the policyholder retains their long-term care insurance without the risk of policy cancellation for non-payment. In contrast, features like renewable term and guaranteed renewal focus on the terms of policy renewal or guarantees to renew coverage regardless of health status but do not specifically address the issue of premium payments during benefit periods. Flexible benefits refer to the options available in structuring coverage but also do not pertain to the waiver of premiums during active claims.