Step-down is when a Long-Term Care Insurance policyholder reduces their coverage to lower their premium.
Step-down is a Long-Term Care Insurance feature that allows policyholders to reduce their coverage for a lower premium.
For example, a policyholder could reduce their benefits in three main ways.
Reduce their monthly or daily benefit.
Reduce their maximum lifetime benefit pool (the total benefits within the account).
Increase the days in the elimination period (this would further delay care coverage).
All policyholders have the right to step-down (reduce coverage) at any time for any reason. It's encouraged to consider stepping down before lapsing coverage.