Which protection is the insurer required to offer to each long-term care applicant at the time of purchase?

• A. Inflation protection
• B. Return of premium
• C. Waiver of premium
• D. Cash value

Answer: (A)

Inflation protection is the protection insurers are required to offer to each long-term care applicant at the time of purchase. As the cost of care rises over time, a fixed benefit would lose purchasing power. Inflation protection provides for periodic increases in benefits (often annually, by a simple or compound rate) so the coverage keeps pace with rising costs. Applicants may choose the increase option or decline it (typically with a signed waiver).

The other options aren’t the mandated offering at purchase: return of premium isn’t a universal requirement for LTC policies, waiver of premium is a common rider but not something every applicant must be offered, and cash value is not a feature of standard long-term care insurance.