Long Term Care Premium Payments, Grace Periods

The provisions in the sample long term care insurance policy clearly state the specific conditions under which benefits will not be paid. Most policies contain provisions similar to those outlined below.

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The premium is due and payable on the Original Coverage Effective Date of the Policy and thereafter in accordance with the Premium Schedule that is in effect for the Policy as shown on the Schedule of Benefitspage. The premium must be paid in U.S. currency.

You may change the premium payment mode with Our approval.

The amount of the premium for Your initial coverage is based on Your Original Issue Age, Health Rating and Discounts, as of the Original Coverage Effective Date as shown on the Schedule of Benefitspage.

We reserve the right to change premium rates on a class basis. The premium will not increase because You get older or Your health changes. Your premium will change if We change Your benefit amounts as a result of Your request or as a result of an increase as provided under the terms of the Policy.

Grace Period

The provisions in the sample long term care insurance policy clearly state the specific conditions under which benefits will not be paid. Most policies contain provisions similar to those outlined below.

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You have a Grace Period of thirty-one (31) days to pay each premium due after the first premium. If the premium is not paid by the end of the Grace Period, We will send a written notice of Lapse of the Policy to You and to any person names to receive such notice a the addresses given to Us. You have thirty-five (35) days after We mail this notice to pay the premium. The policy will stay in force during this time unless We receive a written request from You to cancel the Policy. If We do not receive the premium within thirty-five (35) days of mailing the notice, the policy will then Lapse.

If a claim is payable for services incurred prior to Lapse, any unpaid premiums due will be deducted from the claim payment.

You have the right to name a person to receive notice of Lapseat the same time We send such notice to You. The person named will not be responsible for payment of the premium. You are responsible to inform Us of any change relating tot the person named. We will inform you of Your right to change the person named at least once every two (2) years.