An insurance company can increase the premiums on its LTCI policies after the policy has been initiated if the insured’s health declines.

• A. True
• B. False
• C. Only with notice
• D. Depends on the agreement

Answer: (B)

In South Carolina, once a long-term care insurance policy is in force, the premiums for that policy cannot be increased based solely on the insured’s health declining. This is an important consumer protection feature established to ensure stability in premiums, allowing policyholders to maintain their coverage without the risk of financial strain arising from increased costs due to their changing health status.

Insurance companies may adjust premiums for policies in general, but typically this can only occur under specific conditions that apply to all policyholders and not due to individual health changes. Therefore, if a policyholder's health declines, it does not trigger an increase in their own premium but may instead contribute to broader rate adjustments within the insurance company applicable to all insured individuals. Understanding this distinction is critical for consumers when selecting long-term care insurance, as it provides them reassurance that their premiums will not be unfairly raised based on personal health developments.