Key Takeaways
- Michigan requires specific provisions in disability income insurance policies
- Individual disability policies must include grace period and reinstatement provisions
- Michigan participates in the Long-Term Care Partnership Program for Medicaid asset protection
- LTC policies must offer inflation protection options and nonforfeiture benefits
- Producers must complete LTC-specific training before selling LTC insurance
Last updated: January 2026
Michigan Disability and Long-Term Care Insurance
Michigan has specific regulations for disability income insurance and long-term care insurance that protect consumers and ensure adequate coverage.
Disability Income Insurance
Required Policy Provisions
Michigan disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium; 7-10 days for weekly/monthly |
| Reinstatement | Must allow reinstatement within reasonable period |
| Notice of Claim | At least 20 days after loss begins |
| Time to Pay Claims | Promptly after proof of loss |
| Legal Actions | Time limits for filing suit |
Definitions of Disability
Common definitions used in policies:
| Definition | Meaning |
|---|---|
| Own Occupation | Cannot perform duties of your specific job |
| Any Occupation | Cannot perform any job you're qualified for |
| Split Definition | Own occ for period, then any occ |
Benefit Period Options
- Short-term: 3 months to 2 years
- Long-term: 2 years to age 65 or lifetime
- Elimination periods: 30, 60, 90, 180 days
Renewability Provisions
| Type | Description |
|---|---|
| Non-Cancelable | Cannot cancel; rates guaranteed |
| Guaranteed Renewable | Cannot cancel; can increase class rates |
| Conditionally Renewable | May cancel under specific conditions |
| Optionally Renewable | Insurer can cancel at anniversary |
Long-Term Care Insurance
Michigan has comprehensive LTC insurance regulations:
Free Look Period
- 30-day free look for LTC policies
- Applies to all individual LTC policies
- Policyholder can return for full refund
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable or non-cancelable |
| Pre-existing Conditions | Maximum 6-month look-back, 6-month exclusion |
| Elimination Period | Must disclose clearly |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Inflation Protection Options
Insurers must offer at least one inflation protection option:
- Compound inflation (3% or 5%)
- Simple inflation
- Consumer Price Index adjustment
- Benefit increase option
Michigan Partnership Program
Michigan participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Use benefits for care
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Example
| Without Partnership | With Partnership |
|---|---|
| Spend down to Medicaid limits | Protect assets up to benefits paid |
| May lose home and assets | Enhanced asset protection |
| Standard Medicaid rules | Dollar-for-dollar protection |
Producer Requirements
To sell LTC insurance in Michigan:
- Complete 8 hours of LTC-specific training initially
- Complete 4 hours of LTC CE each licensing period
- Training must be approved by DIFS
- Must cover Partnership program
Test Your Knowledge
How long is the free look period for long-term care insurance in Michigan?
A
B
C
D
Test Your Knowledge
What is the primary benefit of purchasing a Michigan Partnership-qualified long-term care policy?
A
B
C
D
Test Your Knowledge
How many hours of initial training must a Michigan producer complete to sell long-term care insurance?
A
B
C
D