Which statement regarding Long Term Care insurance is true?

The notion that pre-existing conditions must be covered after a specified period is a fundamental aspect of Long Term Care insurance policies. Insurers often impose a waiting period for coverage of pre-existing conditions, which typically means that if a condition was diagnosed or treated before the issuance of the policy, it would not be covered until a certain period has elapsed, usually around six months. This helps insurance companies manage risk while still providing coverage for new issues that may arise after the policy becomes active.

While pre-existing conditions may need to be disclosed during the application process, this does not guarantee coverage; the policy's terms regarding coverage wait times are what establish when treatment for these conditions actually begins. The idea that pre-existing conditions are never covered is overly simplistic, as they can become eligible for coverage after that waiting period. Likewise, stating that they are covered immediately upon policy issuance contradicts the common insurance practice of establishing waiting periods for pre-existing conditions.