Arizona Life and Health Practice Exam

Which is a common requirement for obtaining long-term care insurance?

1. Providing proof of income.

2. Submitting a credit report.

3. Evidence of need for caregiving services.

4. Undergoing a physical examination.

The correct answer is: Evidence of need for caregiving services.

A common requirement for obtaining long-term care insurance is evidence of need for caregiving services. Insurers often assess the applicant's current health status and potential future needs to determine eligibility and appropriate coverage levels. This may involve medical records, assessments of physical or cognitive impairments, and other documentation that demonstrates the likelihood that the insured will require long-term care services. Insurers want to ensure that they are underwriting policies for individuals who may benefit most from the coverage, as long-term care can be expensive and involve specific services like nursing home care or in-home assistance. By requiring evidence of need, insurers aim to gauge the risk associated with insuring the applicant, which ultimately helps in determining policy terms and pricing. While providing proof of income, submitting a credit report, or undergoing a physical examination may be relevant in some insurance scenarios, they are not standard requirements specifically tied to the application for long-term care insurance. The focus in the context of long-term care is predominantly on the individual's need for services, emphasizing their health and anticipated caregiving requirements.