LONG TERM CARE 14
California Department of Insurance
Protecting California Consumers
Toll Free 800-927-HELP
The graphs below illustrate how annual premiums for policies
purchased at age 45 or 65 will differ over time for the Benefit
Increase Option (dotted line) versus 5% compound Built-In
Inflation Protection Option (solid line). (The graphs assume
that inflation continues at 5% per year). The annual premiums
you will pay if you accept each benefit upgrade option will
rise over time under the Benefit Increase Option, while annual
premiums for policies with Built-In Inflation Protection are
designed to remain level. The Benefit Increase Option is therefore
best suited only for those who expect to have increased income
or assets or reduced financial obligations in the future.
Annual Premiums
Benefit Increase Option vs. Built-In Inflation Protection
Option Premiums with Benefit Increase Option (----------------)
Premiums with Built-In Inflation Protection Option (___________)
Premium Discounts and Other Premium-Related
Benefits.The premium you will pay may be adjusted from
the ‘normal’ rate for a single individual. Many companies
offer discounts if both spouses purchase Long-Term Care Insurance.
Several provide discounts for those who do not use tobacco
products and are the most healthy. Some companies provide
that the policy of the surviving spouse is ‘paid-up’ when
the first spouse dies - no further premium payments are required.
A qualified agent can assist you in reviewing the options
available.
What Consumer Protections Apply to Long-Term
Care Insurance Sold in California?
California has a long list of consumer protections, some
of which are listed here.
Renewability
Every individual long-term care policy must be either guaranteed
renewable or non- cancelable.
Guaranteed Renewable
means that the insurer may not cancel your coverage unless
you do not pay premiums on time. Your coverage may not be
cancelled because of your age or your health, but the company
retains the right to increase premiums if the Department of
Insurance approves the
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