# Long-Term Care Premium Jump Triggers 21-Year Coverage Cancellation

> An 81-year-old woman cancels 21 years of long-term care insurance after premiums climb 70% by age 81, but a hidden benefit may offset the cost.
- Title: Long-Term Care Premium Jump Triggers 21-Year Coverage…
- Summary: An 81-year-old woman cancels 21 years of long-term care insurance after premiums climb 70% by age 81, but a hidden benefit may offset the cost.
- Keywords: long-term care insurance, premium increase, contingent nonforfeiture benefit, policy lapse, naic model regulation, medicaid, premium cancellation, Long-Term, Care, Premium, Jump, Triggers
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/20/after-her-long-term-care-premium-climbs-70-by-age-81-she-will-cancel-21-years-of-coverage-in-frustration-the-paid-up-benefit-she-could-walk-away-from-may-be-worth-every-premium-dollar-she-ever-sent
- Author: Gerelyn Terzo
- Published: 2026-10-20T15:30:53+00:00
- Read time: 1 min
- Topics: long-term care insurance, premium increase, contingent nonforfeiture benefit, policy lapse, naic model regulation, medicaid, premium cancellation
## Policyholder at 81
An 81-year-old woman bought long-term care insurance at 60 and has paid 21 years of premiums with zero claims.
## 70% Premium Increase
Her long-term care insurance premium has climbed 70% above the original premium after 21 years of payments.
## Contingent Nonforfeiture Benefit
A hidden benefit allows her to stop paying premiums and keep a pool of coverage worth up to every premium dollar she ever sent.
## NAIC Model Regulation
The National Association of Insurance Commissioners’ long-term care insurance model regulation requires a 70% cumulative increase to trigger this benefit for policies bought at age 60.
## Washington State Rule
Washington uses the same 70% threshold for policies bought at age 60 and ties the contingent benefit to the insured’s issue age and cumulative increase.
## Paid-Up Credit Value
The paid-up credit can equal 100% of the premiums paid, subject to the policy’s remaining benefit limit and state rules.
## Medicaid Coverage Gap
Medicare doesn’t cover long-term custodial care, and Medicaid generally steps in only after savings are largely spent.
## Consumer Advocate Warning
Consumer advocate Clark Howard warns that premiums are not guaranteed and insurers may raise rates to encourage policy cancellations.
## Timing for Benefit
The policy must lapse within 120 days of the increased premium’s due date to trigger the contingent nonforfeiture benefit.
## Three Options at Age 81
She can absorb the higher premium, reduce benefits, or take the contingent paid-up benefit to stop paying and keep a smaller pool of coverage.
## Key takeaway

An 81-year-old woman cancels 21 years of long-term care insurance after premiums climb 70% by age 81, but a hidden benefit may offset the cost.