New York Child Abuse Identification and Reporting Practice Exam

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

1. Guaranteed renewability

2. Accidental death coverage

3. Limited term coverage

4. Universal health coverage

The correct answer is: Guaranteed renewability

Long-term care insurance typically includes guaranteed renewability as a common feature. This means that the policyholder is assured that their coverage will not be canceled or non-renewed by the insurer, provided that the premiums continue to be paid. Guaranteed renewability is crucial for long-term care insurance because it ensures that individuals can maintain their insurance benefits as they age or if their health declines, which is particularly important given that the need for long-term care usually arises as people grow older. In contrast, the other options do not align with the common features of long-term care insurance. Accidental death coverage is more commonly found in life insurance policies and does not pertain to the long-term care needs typically covered by this type of insurance. Limited term coverage refers to policies that provide benefits for a specified period, which is generally not characteristic of long-term care insurance that is designed to offer support over an extended duration or until certain conditions are met. Universal health coverage relates to a system of health care provision and access rather than the specific benefits of long-term care insurance.