What option must long-term care (LTC) policies offer at the time of application?

The correct choice is that long-term care (LTC) policies must provide inflation protection at the time of application. This is crucial because the cost of long-term care services generally increases over time due to factors like inflation. By offering inflation protection, LTC policies help ensure that the benefits available when needed will be adequate to cover future healthcare costs. This feature allows policyholders to select benefits that will grow over time, thus maintaining the purchasing power of their coverage.

Inflation protection can come in various forms, such as automatically increasing benefits by a certain percentage each year, or offering an option to purchase additional coverage as needed. This feature is particularly important for longer-term policyholders, as they may find themselves needing benefits many years after they first purchased their policy.

Understanding the necessity of inflation protection in LTC policies aids consumers in making informed decisions regarding their long-term care planning, ensuring they are better prepared for future expenses.