What provision must a long-term care insurance policy contain?

A long-term care insurance policy must contain a provision for guaranteed renewability. This provision ensures that the policyholder has the right to renew their policy each year without the insurer being able to cancel it or change the terms based on the insured’s health status. This is crucial for individuals who may rely on long-term care coverage as they age or face health challenges, as it provides them with security and peace of mind knowing they can maintain their coverage.

Having guaranteed renewability protects consumers against potentially significant rate increases or denial of coverage in the future due to the development of new health conditions. This principle is central to the design of long-term care insurance policies, as it directly addresses the demographics of aging individuals who require continuous care.

In contrast, other provisions mentioned do not meet the criteria for mandatory inclusion in such policies. For example, coverage for drug and alcohol dependency, as well as conditions resulting from war, may not be standard provisions and are often excluded to keep policies focused on custodial or skilled care needs. A probationary period of 180 days, while it may appear reasonable, is not a standardized requirement for long-term care insurance, and such requirements can vary based on specific policies or regulations but are not universally mandated. Thus, the provision for guaranteed