A Long-Term Care policy MUST have which of the following characteristics?

Optional renewability means the insurer can choose whether to renew the policy at the end of each term, which can leave policyholders vulnerable to non-renewal when they may need coverage the most. This characteristic does not provide the stability and security that long-term care policyholders require.

Conditional renewability allows an insurer to renew a policy only under certain conditions, which may include factors such as changes in the insured's health or age. This characteristic introduces uncertainty and could lead to denial of renewal, making it unsuitable for long-term care needs where consistent coverage is essential.

A noncancellable policy means that the insurer cannot cancel the policy as long as premiums are paid. However, if the insurer has the right to change the premium rate, it introduces financial uncertainty for the policyholder. Long-term care policies must guarantee renewal without allowing such premium changes to ensure affordability and continuous coverage.