Is there a cap on how much LTCI benefit a client can receive after conversion from the base CII plan?
The maximum amount of CII coverage that may be converted is $250,000 – which is equal to a maximum weekly benefit of $1,250 (this is calculated by dividing the amount of CII base benefit to be converted, by 200. The benefit period for the converted LTCI policy may be unlimited, but the policy owner can choose a shorter benefit period if available at the time of conversion. The waiting period must be at least 90 days, but may be longer if a longer waiting period is available at the time of conversion. If a client had more than $250,000 in their CII policy and decided to convert to LTCI, the maximum amount they can convert is $250,000. In this scenario the client also needs to ensure the minimum face amount was left in the CII (if they want to keep the CII policy in force).
Related Questions
- Does my client need to provide medical evidence if they choose to change from a regular payment CII plan to a CII plan with a limited payment option?
- How does my client benefit from adopting a Premium Conversion Cafeteria Plan?
- How do my client’s employees benefit from a Premium Conversion Cafeteria Plan?
