Life License Qualification Program (LLQP) Practice Exam

What does the guarantee of insurability option allow a long-term care policyowner to do?

1. Buy additional coverage at a later date

2. Add the insured's spouse at a later date

3. Pay the same premium for life

4. Cancel the policy at any time

The correct answer is: Buy additional coverage at a later date

The guarantee of insurability option is a valuable feature in long-term care insurance policies that allows the policyowner to buy additional coverage in the future without having to provide evidence of insurability or undergo medical underwriting at that time. This means that if the policyowner's health deteriorates, they can still secure additional coverage at predetermined rates, ensuring that their insurance needs can be met even if they develop health issues later in life. This feature can be particularly crucial for individuals who anticipate needing more coverage as they age or if their health condition changes over time. It provides peace of mind that they will not be denied coverage based on their health status when they decide to increase their policy limits. The other options do not accurately reflect the essence of the guarantee of insurability feature. While adding a spouse or maintaining the same premium might be beneficial features, they do not directly relate to the primary function of the guarantee of insurability. Likewise, the ability to cancel the policy at any time is a standard right that most policyholders have and does not specifically connect to the guarantee of insurability. Thus, the correct answer highlights a significant advantage for policyholders seeking flexibility in their long-term care planning.