Indiana State Life and Health Insurance Practice Exam

Which Long Term Care insurance statement is true?

1. Inflation protection is usually not offered

2. Benefits are usually payable for alcohol rehabilitation

3. Can only be offered to individuals under the age of 70

4. Pre-existing conditions must be covered after the coverage has been in force for 6 months

The correct answer is: Pre-existing conditions must be covered after the coverage has been in force for 6 months

The statement regarding pre-existing conditions is accurate because, under federal regulations and many state laws, long-term care insurance policies are required to provide coverage for pre-existing conditions after a minimum period, which is often six months. This stipulation is crucial for policyholders as it ensures that they will receive benefits for conditions that existed prior to the issuance of the insurance policy after the waiting period has elapsed. This framework offers a level of security to consumers, allowing them to plan for potential future long-term care needs without the fear of being denied coverage for previously diagnosed health issues after the waiting period. Inflation protection is generally an optional rider that many policies might offer to help policyholders keep pace with rising care costs, thus the statement about it not usually being offered is misleading. Long-term care insurance is not confined by an age cap, as policies can be issued to individuals beyond the age of 70, contradicting the idea presented. Alcohol rehabilitation, while it may be covered under some policies, is not typically a standard benefit, making the assertion about it being regularly included in benefits questionable.