LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A long-term care contract's inflation protection option typically:
- ARefunds the difference between the benefit paid and the actual cost of care
- BReduces the elimination period each year to offset the rising cost of care
- Increases the daily or monthly benefit over time, for an additional premium
- DGuarantees that the premium will never rise for the life of the contract
Correct answer: C) Increases the daily or monthly benefit over time, for an additional premium
Care costs rise steadily over the decades between purchase and claim, so an option that indexes the benefit is central to whether the coverage is still meaningful when it is needed.
Why the other options are wrong
- ANo contract tops the benefit up to actual cost automatically.
- BThe elimination period is fixed and does not shrink over time.
- DPremium guarantees are a separate feature of the contract.
Exam tip
Long-term care claims happen decades after purchase; index the benefit.
Common mistake
Buying a level long-term care benefit at a young age.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.