Virginia State Life, Health and Annuities Practice Exam 2025 - Free Life, Health, and Annuities Practice Questions and Study Guide

Qualified long-term care policies are designed to meet specific standards outlined by federal law to ensure that the benefits paid are tax-advantaged for the policyholder. Among the provisions typically included in these policies, guaranteed renewability, inflation protection, and nonforfeiture options are requirements aimed at safeguarding the interests of policyholders.

The absence of a prior hospitalization requirement is key because this provision is not mandated for a qualified long-term care policy. Unlike Medicare, which necessitates prior hospitalization for certain benefits, qualified long-term care insurance can provide coverage without requiring an individual to be hospitalized first. This flexibility ensures that individuals needing care can access services without the barrier of hospitalization, making the policy more beneficial for those seeking immediate assistance with daily living activities.

Thus, the fact that prior hospitalization is not a required feature aligns with the intent of long-term care policies: to provide accessible support for individuals who may need long-term assistance due to chronic illness or disability.