Long Term Care Certification Practice Test

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Prepare for the Long Term Care Certification Test with comprehensive study guides, quizzes, and flashcards. Each question includes hints and explanations. Master your exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What type of policy premium is guaranteed for the life of the policy?

Variable premium
Flexible premium
Level premium
Adjustable premium

The correct answer is: Level premium

A level premium policy is designed to keep the premium amount consistent throughout the life of the policy. This means that the policyholder pays the same amount in premiums year after year, regardless of changes in age or health, as long as the policy remains active. This stability can aid in budgeting for both the policyholder and the insurer, often making it an attractive option for long-term planning. In contrast, variable premiums can fluctuate based on investment performance and other factors, while flexible and adjustable premiums allow for modifications depending on the policyholder’s needs or financial situation. These types of premiums do not guarantee a fixed amount over the policy's lifetime, which makes the level premium distinctive for its reliability and predictability.