Long-Term Care✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Choosing a longer elimination period on a long-term care policy generally has which effect on the premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A longer elimination period shifts more of the initial care costs to the insured, so the insurer's expected payout drops and the premium is correspondingly lower. This trade-off lets clients control cost, much like raising a deductible in medical insurance. AH-II.1 anchors the elimination-period concept, and its premium effect is a standard A&H exam relationship.
Why the other options are wrong
- B) A longer waiting period reduces insurer exposure and therefore lowers, not raises, the premium.
- C) The elimination period directly affects expected claims and thus the premium.
- D) Inflation protection addresses future benefit erosion and is independent of the elimination period.
Memory hook
Longer wait, smaller premium — the elimination period is a deductible in days.