What is the definition of Guaranteed Purchase Option for Long Term Care Rider (LTC-GPO)?
This rider gives the base policy’s primary insured the option to purchase an individual long term care (LTC) policy at set option dates in the future, without any further underwriting. The option dates are the base policy anniversaries when the insured is attained age 20, 25, 30, 35, 40, 45, 50, 55 and 60, but no sooner than the rider’s second policy anniversary. [For example: if the rider is issued at the insured’s age 43 then the first option date will be the anniversary at attained age 45 which is also the 2nd anniversary. If the rider is issued at the insured’s age 44 then the first option date will be the policy anniversary at attained age 50.] The rider may be exercised only once and that must take place no earlier than 60 days prior to and no later that 60 days after an option date. The contractual name for LTC-GPO is Option to Purchase Long-Term Care Insurance Rider.