Exemptions to the Individual Mandate
There are some cases where there is no penalty to not having coverage.
Optional features may be added to your policy. Most optional features will add to the cost of your plan. While each policy may have its own specific options, 3 common optional riders include:
Inflation will affect the cost of long-term care services.
Providing inflation protection is an important addition to your policy because it ensures that your policy’s value will increase with inflation. It may also significantly increase the cost of your coverage.
Inflation benefits may be increased on either a "simple" or "compounded rate basis".
In Kansas, every company must offer you an inflation protection option. It is your decision whether to buy the coverage. If you refuse the coverage, you will be asked to sign a statement saying you don’t want inflation protection. Be sure you understand what you are signing.
Inflation protection is most commonly offered in one of two ways:
Inflation protection isn’t the same as a future purchase option. This allows you to choose to increase your benefit periodically.
Most companies provide a waiver of premium provision. This provision allows you to stop paying premiums (a.k.a. "waive the premium") once you are in a nursing home and the insurance company has started to pay benefits.
With this benefit, if you cancel the policy or stop paying the premiums you won't forfeit all benefits at the end of the period covered by your final premium. You will be eligible for a reduced benefit for a limited period of time until the non-forfeiture benefit is exhausted.
A nonforfeiture benefit can add significantly to a policy’s cost, depending on such things as your age at the time of purchase, the type of nonforfeiture benefit offered and whether the policy provides inflation protection.
This article is published on KansasMoney.gov. Find more information by contacting these state agencies: