What is waiver of premium and restoration of rights mean with respect to long term care insurance?
Longterm care insurance provides home healthcare and nursing home care. Often in these policies we see a couple of unique benefits. One is referred to as the waiver of premium. This means that while the insurance company is being benefits you no longer have to pay the premiums for the policy. Now, a lot of times the insurance company will continue to charge premiums even though you’re still obtaining benefits. If this is happening, your insurance company is inappropriately applying your policy and you may be able to collect the premiums you’ve paid. Another benefit is the restoration of benefits. Keep in mind that most longterm care policies provide a maximum benefit period of a certain number of years. In certain cases you may be entitled to restore all of the benefits under the policy. If you have any questions about the restoration of benefits or the waiver of premium, or think these policies have been inappropriately applied, contact an insurance attorney who is familiar with these types of issues.