Policies must allow buyer to cancel a policy without penalty during the 30 days after receiving the policy. Insurance companies must notify a third person designated by the insured individual before terminating a policy for nonpayment of premium. This requirement is designed to avoid accidental lapse of coverage. Long-Term Care insurance may not exclude coverage for a loss which is the result of a preexisting condition unless such loss or confinement begins within six months following the effective date of coverage. The cost of long-term care insurance is determined by the options selected, the sex and age of the person at the time of issue.
Females usually pay higher premiums because they tend to live longer.
The younger individual pays less than an older person. Length of the benefit payment and daily payment amounts represent the most expensive features in long-term care insurance. Waiver of premium, ancillary benefits such as home health and the inflation feature will also increase the cost though not as severely. Obviously, the higher the desired daily benefit, the more costly the insurance. This means that the insurance company will pay its daily benefit for up to the number of years the individual chooses for any period of confinement.