Kentucky Health Insurance Practice Exam

Nonforfeiture benefits are essential features of long-term care (LTC) insurance policies. These benefits are designed to provide protection to policyholders in case they stop paying their premiums after a certain period. When a policyholder opts for nonforfeiture benefits, they are assured that they will not completely lose their invested premiums if they discontinue the policy after a specified duration. Instead, they may receive some form of benefits based on what they have already paid in.

This aspect is particularly important in LTC insurance, where the potential for significant financial loss exists if one can no longer afford premiums but still requires care. Therefore, requiring every policy to include nonforfeiture benefits ensures that consumers have a safety net, thus providing them with more security concerning their long-term care options.

The other options, which suggest requirements that are not universally applicable to LTC insurance policies, do not provide this level of consumer protection and security.