Which statement is true regarding Long-Term Care (LTC) insurance policies?

Long-Term Care (LTC) insurance policies are designed to cover the costs of care for individuals who may need assistance due to aging, illness, or disability. The requirement for nonforfeiture benefits is particularly important because it ensures that policyholders are protected should they choose to discontinue their coverage after having paid premiums. Nonforfeiture benefits typically provide some form of benefit to the policyholder if they have paid into the policy for a certain period but decide to cancel it later. This adds a layer of security and value to the policy, addressing concerns that consumers might have about losing their investment if they no longer want or need the insurance.

In many jurisdictions, including Montana, LTC policies are often required to include nonforfeiture provisions to ensure consumer protection, making this statement true. Policies typically must offer these options to provide assurance that if the insured takes a break from the policy or decides to let it lapse, they still retain some benefits.

Other concepts related to LTC insurance, such as cash value accumulation, cancellation provisions, and coverage of pre-existing conditions, vary widely among policies or may not be mandated by law, leading to potential confusion. Nonetheless, the establishment of nonforfeiture benefits is a critical standard intended to safeguard consumers, which is