What must a long-term care policy include regarding renewability?

Long-term care policies are designed to provide coverage for individuals who may need assistance with daily activities over an extended period. One crucial aspect of these policies is "guaranteed renewability," which ensures that as long as the policyholder pays their premiums, the insurer cannot cancel or refuse to renew the policy once it is issued, regardless of changes in health status. This feature is vital for individuals seeking peace of mind that their coverage will remain in place as they age or if their health declines.

Without guaranteed renewability, a policyholder could face the risk of being unable to renew their coverage if they develop health issues, potentially leading to significant out-of-pocket expenses for long-term care services. This requirement helps protect consumers and thereby strengthens the stability and reliability of long-term care insurance for those who may rely on it in later life.