Long Term Care Certification Practice Test

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

1. Guaranteed issue without health questions

2. Provider choice restrictions

3. Elimination periods

4. Automatic claim approval

The correct answer is: Elimination periods

Long-term care policies typically include an elimination period, which is a specific time frame that must pass after the policyholder becomes eligible for benefits before the insurer begins to pay for covered services. This period can range from a few days to several months, and it functions similarly to a deductible in health insurance, encouraging policyholders to plan ahead and manage their care needs during this waiting time. Including an elimination period helps insurance companies manage costs and allows policyholders to rely on their personal financial resources for a short period before the policy benefits kick in. The other options represent features that may vary based on specific policy designs and providers. For example, while some policies may offer guaranteed issue, not all do; this means that some applicants may still face health questions. Provider choice restrictions can also exist but vary significantly from one policy to another, often based on the insurer's network agreements. Lastly, automatic claim approval is not a standard feature and often depends on meeting the specific criteria outlined in the policy.