Long Term Care Certification Practice Test

Question: 1 / 400

Under which circumstance would replacing an insurance policy be considered acceptable?

The replacement policy offers identical benefits

The replacement policy offers additional benefits with a correlating premium increase

Replacing an insurance policy is deemed acceptable when the new policy offers additional benefits that justify a correlating increase in premium. This is because the added benefits can improve the policyholder's coverage and financial security, making the increased cost worthwhile. Policyholders should assess whether the enhancements provide greater value, such as expanded coverage, lower out-of-pocket costs for certain services, or additional features that better fit their evolving needs.

When a replacement policy simply offers identical benefits without additional value, or a lower deductible without enhancements, it may not provide enough justification for a switch. Likewise, a policy that mandates proof of good health can introduce unnecessary barriers and may not enhance the overall benefits provided to the policyholder.

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The replacement policy has a lower deductible

The replacement policy mandates proof of good health

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