Long Term Care Certification 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

If an applicant chooses a long-term care policy with a longer elimination period and a short benefit period, what is the likely impact on the premium amount?

The premium will increase significantly

The premium will be raised slightly

The premium will be unchanged

The premium will be lowered due to the long elimination period and short benefit period

Choosing a long-term care policy with a longer elimination period and a shorter benefit period typically results in a lower premium amount. The elimination period is the time that must pass before benefits begin, which means the insurer will not have to pay out claims during this time. A longer elimination period reduces the insurance company's risk and potential payout, leading to lower premiums.

Similarly, a shorter benefit period reduces the duration of time that the policy will pay out benefits. This further decreases the insurer's financial exposure since they will be liable for a shorter timeframe. Consequently, both of these factors combined – a longer elimination period and a shorter benefit period – make the policy less costly for the insurer, which translates into a reduced premium cost for the policyholder.

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