Which option is NOT a permitted exclusion for long-term care insurance policies?

Long-term care insurance policies are designed to provide coverage for a range of services aimed at supporting individuals who cannot perform daily activities due to illness, disability, or cognitive impairment. Each of the options listed reflects scenarios that might be considered when determining what is covered under these policies.

Care for physical rehabilitation is typically included in long-term care insurance, as it aids recovery post-illness or injury. Similarly, care for incapacitated individuals fits within the scope of services covered, as these individuals often require assistance with daily living activities. Likewise, care for individuals with chronic illnesses is also covered, acknowledging the ongoing support needed for those with persistent health conditions.

In contrast, care for incurable conditions would not be a permitted exclusion because long-term care insurance is intended to support individuals regardless of the curability of their conditions. The presence of an incurable condition does not negate the need for care, and therefore it remains covered under such policies. This reinforces the purpose of long-term care to provide the necessary assistance regardless of the prognosis of the underlying health issues.