What must insurers provide before selling long-term care insurance?

Before selling long-term care insurance, insurers are required to provide a summary of benefits and coverage terms. This essential document informs potential policyholders about the specific coverage being offered, including details about the benefits, exclusions, and limitations of the policy. By understanding these critical components, consumers can make informed decisions regarding their insurance choices, ensuring that the policy will adequately meet their needs for long-term care.

The provision of a summary of benefits and coverage terms is a fundamental consumer protection measure. It ensures transparency and helps clients compare different policies effectively, fostering an environment where consumers are able to select the most suitable long-term care insurance for their situations.

Other options do not align with the regulatory requirements for selling long-term care insurance. Referrals to financial advisors, lists of current policyholders, and annual audits from state agencies do not directly address the necessity for clarity and understanding of the insurance product itself for prospective buyers.