Long Term Care Certification Practice Test

What provision allows an insured to stop paying premiums while receiving benefits from a long-term care policy?

1. Extended Benefits

2. Waiver of premium

3. Premium Reduction

4. Grace Period

The correct answer is: Waiver of premium

The provision that allows an insured to stop paying premiums while receiving benefits from a long-term care policy is the waiver of premium. This feature is designed to alleviate the financial burden on individuals who have already started to utilize their long-term care benefits due to a qualifying event, such as a serious illness or injury. When the waiver of premium is in effect, the policyholder does not have to continue making premium payments while they are receiving care, thus ensuring they can focus on their recovery or management of their condition. This provision recognizes the significant expenses often associated with long-term care and provides financial relief by allowing individuals to maintain their coverage without the additional cost of premiums during a time of need. In contrast, the other options serve different purposes. Extended benefits refer to additional coverage periods beyond the initial policy limits. Premium reduction involves lowering the amount of the premium but does not eliminate it entirely. The grace period is a temporary extension that allows the insured to make payments without losing coverage, but it does not provide a permanent cessation of premium payments while benefits are in use.