Qualified long-term care policies must include all of the following provisions EXCEPT

• A. Nonforfeiture option
• B. Inflation protection
• C. Prior hospitalization
• D. Guaranteed renewability

Answer: (C)

Qualified long-term care policies are designed to protect you against rising care costs and to keep coverage stable. They must include protections like a nonforfeiture option, which gives you some coverage even if you stop paying premiums, and inflation protection, which helps your benefits keep pace with increasing care costs. They also must be guaranteed renewable, meaning the insurer cannot cancel the policy solely because of changes in your health or age as long as premiums are paid. Prior hospitalization, however, is not a required provision for a tax-qualified long-term care policy; LTC benefits can be triggered by needing long-term care services without a prior hospital stay, covering settings like home care, assisted living, or skilled nursing as appropriate.