Long Term Care Insurance Center

Long Term Care Insurance Q & As

Question 3 of 9 in How Much Does It Cost
Do I have to pay premiums until I die?
Not necessarily. If you want to prevent your policy from lapsing, you have to pay the premiums during the premium paying period. While the premium paying period for many policies ends at death, some policies provide for payment over 10 years, or even just a single payment. The benefits of a shorter premium paying period include the ability to pay for the insurance in full, before or during early retirement. In addition, once the policy is fully paid up the company cannot increase premiums.

The principal disadvantage of paying only 10 premiums is that each of the premiums will be larger than those for a policy whose payable until death. In addition, some states require that the selection of a 10-pay premium plan must be accompanied by the selection of other costly options (non-forfeiture options), thereby adding a third level of cost for a benefit that may not be important to you.