South Carolina Life and Health Practice Exam

Which of the following is a feature of long-term care insurance?

1. Lifetime coverage without limits

2. Mandatory health exams for approval

3. Daily benefit limits for services

4. Automatic renewals without premiums

The correct answer is: Daily benefit limits for services

Long-term care insurance is designed to cover the costs associated with long-term care services, which may not be covered by traditional health insurance or Medicare. A notable feature of this insurance is the implementation of daily benefit limits for services. This means that policyholders are provided with a set amount of coverage per day, which can help manage the overall costs of long-term care. It allows individuals to have a predictable financial limit to plan their long-term care needs. The daily benefit limits provide a framework within which policyholders can receive various forms of care, such as in-home care, assisted living, or nursing home care, ensuring that they have access to necessary services while maintaining financial control. This structure can help individuals tailor their policies to fit their needs and budget, as they can choose the daily limit that best suits their anticipated care requirements. Lifetime coverage without limits is generally not a feature of most long-term care policies, as that would significantly increase the risk and premiums associated with the policy. Mandatory health exams are not universally required for approval, as many policies allow for simplified underwriting, particularly for certain age groups or amounts of coverage. Automatic renewals without premiums is also not a standard feature, as premiums are typically required to maintain coverage over time.