LTC Waiver of Premium

A Long-Term Care (LTC) Waiver of Premium is a provision in an LTC insurance policy that exempts the policyholder from paying premiums after they have become eligible for benefits due to a covered long-term care event. The insurance company will continue to pay benefits for the policyholder's long-term care even though they are not paying premiums.

Here are some key features of a LTC Waiver of Premium:

• A LTC Waiver of Premium is often included as a standard feature in most LTC insurance policies.

• The policyholder must meet certain requirements to become eligible for the Waiver of Premium, such as being unable to perform at least two activities of daily living or requiring substantial supervision due to cognitive impairment.

• Once the policyholder becomes eligible for the Waiver of Premium, they are not required to pay any further premiums, even if they recover from their long-term care event and no longer need benefits.

• The Waiver of Premium only applies to the long-term care portion of the policy, and not to any other riders or benefits.

• The policy will continue to provide benefits for the policyholder's long-term care until the policy's maximum benefit amount is reached or the policy is exhausted.

• The policyholder may still be responsible for paying any deductibles, coinsurance, or other out-of-pocket costs associated with their long-term care.

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