LLQP Accident & Sickness · Component 2.2 · 30% of the exam
An 'inflation protection' option on an LTC policy:
- Increases the daily benefit each year, before and during a claim, so it still buys care decades later
- BApplies only during a claim, raising the benefit each year that care continues to be received
- CReduces the premium in exchange for a benefit that is fixed for the entire life of the policy
- DIs rarely worth buying because care costs have historically risen more slowly than general inflation
Correct answer: A) Increases the daily benefit each year, before and during a claim, so it still buys care decades later
LTC claims may start decades after purchase. Without inflation protection the benefit may cover a fraction of care costs. Compound protection is most effective and most expensive.
Why the other options are wrong
- BIt applies before claim as well, unlike DI COLA.
- CIt increases the premium.
- DFor younger buyers it is essential; care costs rise faster than general inflation.
Exam tip
LTC inflation protection works before and during claim; compound is stronger.
Common mistake
Selling LTC at 55 without inflation protection.
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.