What happens if I stop paying long-term care insurance premiums?

If you simply stop paying, your policy enters a short grace period and then lapses — coverage ends. With a traditional policy that has no cash value, you generally forfeit the premiums you paid.

But there are protections worth asking about before you let a policy lapse:

• Nonforfeiture benefit — if you bought this option, you keep a smaller, "paid-up" amount of coverage instead of losing everything.
• Contingent nonforfeiture — many states require insurers to offer a reduced paid-up benefit if your premium was raised substantially.
• Reduce, don't drop — the insurer can often lower your benefit or benefit period so the premium fits your budget while you keep some coverage.

Call the insurer first — lapsing should be the last resort, not the first move.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.