Question

In long-term care (LTC) policies, as the benefit period lengthens, the premium

a) LTC premiums are not based on benefit periods.
b) Decreases.
c) Increases.
d) Remains unchanged.

Answer 1

In long-term care (LTC) policies, as the benefit period lengthens, the premium increases.

Step-by-step explanation:

In long-term care (LTC) policies, as the benefit period lengthens, the premium increases. A benefit period is the maximum length of time for which benefits are payable under the policy. Typically, the longer the benefit period, the higher the premium because the insurer is taking on a greater risk of providing coverage for a longer period of time. For example, if the benefit period is 3 years, the premium may be lower compared to a policy with a benefit period of 5 years.

Answer 2

In long-term care (LTC) policies, as the benefit period lengthens, the premium increases.

Step-by-step explanation:

In long-term care (LTC) policies, as the benefit period lengthens, the premium increases. A benefit period is the maximum length of time for which benefits are payable under the policy. Typically, the longer the benefit period, the higher the premium because the insurer is taking on a greater risk of providing coverage for a longer period of time. For example, if the benefit period is 3 years, the premium may be lower compared to a policy with a benefit period of 5 years.