Other LTC Policy Options You May Choose


Additional Benefits: These are basic policy features and options available with many of the LTC carriers. These benefits may or may not add to the cost of your policy. Ask... what features increase the cost of my policy? Rule of Thumb: If it is offered as a benefit choice and you must answer "yes" or "no", then there is usually a cost involved.

Third Party Notice: This benefit lets you name someone who the insurance company would contract if your coverage is about to end because you forgot to pay the premium. Sometimes people with cognitive impairments forget to pay the premium and lose their coverage when they need it most. You can choose a relative, friend, or a professional (lawyer, etc.) as your third party. No cost.

Waiver of Premium: Many policies automatically include this feature, but some may offer it as an additional optional benefit. This benefit lets you stop paying the premium once you are eligible for benefits and the insurance company has started to pay benefits. Some plans stop your payments when benefits start, others stop your benefits after a stated amount of time from the start of benefits (as an example 60 or 90 days). Usually no cost involved.

Restoration of Benefits: This option gives you a way to keep the maximum amount of your original benefit even after your policy has paid you benefits. With this option, if you fully recover after a prior disability and go for a stated period without needing or receiving more long-term care services, your benefit will restore back to the original amount you first bought. Usually a cost involved.

Premium Refund At Death: This benefit pays to your estate any premiums you paid minus any benefits the company paid. To get a refund at death, you must have paid premiums for a certain number of years (depends on contract chosen). The premium refund option may also add to the cost of the contract if it is offered in the form of a rider. Usually a cost involved.

Nonforfeiture Benefits: If, for any reason, you drop your coverage and you have a nonforfeiture benefit in your policy, you will receive some benefit value for the money you've paid into the policy. Without this type of benefit, you get nothing even if you've paid premiums for 10 or 20 years before dropping your policy. Usually a cost involved.

Contingent Nonforfeiture Benefits: In some states, if you don't accept the offer of a nonforfeiture benefit, a company is required to provide a "contingent benefit upon lapse." This means when your premiums increase to a certain level (based on a table of increases), the "contingent benefit upon lapse" will take effect. For example: if you bought a policy at age 70 and did not accept the insurance companies offer of a nonforfeiture benefit, if the premiums rises to 40% more than the original premium you will be offered the opportunity to accept one of the "contingent benefits upon lapse". The benefits offered are:

  1. a reduction in the benefits provided by the current policy so that premium costs stay the same, OR

  2. a conversion of the policy to paid-up status with a shorter benefit period. OR

  3. You may choose to keep your policy and continue to pay premiums.

Usually no cost involved.


Disclaimer: Insurance products are offered through insurance companies with which we have sales arrangements. Not all products/features may be available in your state. Check with your Accountant or Tax professional on the tax issues associated with Long-Term Care insurance purchase and benefits. Associates of Clifton Park are not a part of Raymond James & Associates. Securities offered through Raymond James & Associates, Inc. Member FINRA/SIPC

Raymond James financial advisors may only conduct business with residents of states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are addressed on this site. Contact your local Raymond James office for information and availability.