Quick Description

A class is a group of Long-Term Care Insurance policyholders with a common trait.

Full Description

In Long-Term Care Insurance, a "class" is a group of people with similar traits in common. Shared traits can include:

  • Same application date

  • Same policy form

  • Same sex

  • Same policy issue date

  • Same policy issue year

  • Same rate classification

  • Same state of policy issue

Policyholders are sorted into classes for premium purposes. In Long-Term Care Insurance, premiums are intended to remain level. Premiums can only increase across an entire class, not just for individual policies. 

Sorting policyholders into classes can help insurance companies determine which groups' premiums will increase. However, it should be noted that premiums can only increase if determined absolutely necessary by state actuaries. 

To learn more about classes and why they’re important, you can read our article on Long-Term Care Insurance underwriting