What do nonforfeiture provisions in LTC policies ensure?

Nonforfeiture provisions in long-term care (LTC) policies are designed to ensure that policyholders retain some value from their benefits even if they stop making premium payments or if the policy lapses. This is particularly important in the context of long-term care insurance, where maintaining access to benefits can be crucial for future healthcare needs.

When a policyholder pays premiums for a long period but then is unable to continue due to various reasons, such as financial hardship or changes in health, nonforfeiture provisions provide a safety net. These provisions may allow the policyholder to receive reduced benefits or a paid-up policy that retains some level of coverage, rather than losing all accumulated advantages due to non-payment.

The other options do not accurately reflect the purpose of nonforfeiture provisions. Full refunds of premiums at any time, for instance, are generally not guaranteed under these provisions. Similarly, nonforfeiture provisions do not provide unlimited coverage regardless of payment history nor do they facilitate transferring benefits to family members. The essence of nonforfeiture is about retaining benefits that the policyholder has accrued, thus making option B the most fitting and relevant choice.