Citi Benefits Handbook
Choosing a Non-Forfeiture LTC Benefit or a Contingent Non-Forfeiture LTC Benefit
For an additional cost, you may have included a non-forfeiture benefit (reduced lifetime maximum paid-up benefit) in your coverage at enrollment. If you did not elect this option, the contingent non-forfeiture benefit will be included in your coverage at no additional cost.
If you have been continuously insured under the LTC Plan for at least three years, the non-forfeiture benefit (reduced lifetime maximum paid-up benefit) will allow you to stop making premium payments for any reason and retain a reduced level of coverage.
If you exercise this benefit, you will keep your full daily maximum benefit (DMB) amount, but the lifetime maximum benefit (LMB) will be reduced. Your reduced LMB will equal the greater of 30 times your DMB or the sum of premiums paid. If you exercise this benefit after a minimum of 10 years of continuous coverage, the reduced LMB would equal the greater of 90 times the DMB or the sum of premiums paid.
The contingent non-forfeiture benefit can be exercised only in the event of a substantial premium increase. The contingent non-forfeiture benefit allows you to stop paying premiums and keep a reduced level of coverage.
If you exercise this benefit, you will keep your full DMB amount, but the LMB will be reduced. Your reduced LMB will equal the greater of the total amount of premiums paid for your insurance since your coverage was issued or 30 times the DMB. A substantial premium increase would range from 10% at issue-age 90 or older to 200% at issue-age 29 or younger as detailed in the certificate that you will receive if you are approved for coverage.