Section 7702(b)
Section 7702(b) is an integral Long-Term Care Insurance regulation that offers consumers protections and defines how and when policies should cover long-term care.
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Section 7702(b) is part of the Internal Revenue Code that defines tax-qualified Long-Term Care Insurance policy guidelines.
In other words, it outlines rules about what Long-Term Care Insurance should and shouldn't cover. It also explains how coverage should function to be fair to all.
A few important aspects of Section 7702(b) include:
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Long-Term Care Insurance is tax-qualified.
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Premiums cannot increase without warning or actuarial certification.
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Companies cannot cancel your policy for no reason or because of a health change after you've obtained a policy.
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Every policy has the same benefit triggers (which are needing help with two or more activities of daily living or needing supervision due to cognitive decline).
Section 7702(b) is an essential protection for Long-Term Care Insurance. It keeps coverage fair to all and ensures stability in benefits and premiums. To learn more, read our article on Long-Term Care Insurance regulations that explains Section 7702(b) in greater detail.