All of the following statements about life insurance policy long-term care riders are correct, EXCEPT:

The statement regarding the requirement for hospitalization before qualifying for long-term care (LTC) benefit payments is inaccurate, which makes it the exception among the other statements. Long-term care riders in life insurance generally do not require that the insured first be hospitalized to access the benefits. Instead, qualification for these benefits typically involves meeting specific criteria related to the individual's ability to perform activities of daily living or having a cognitive impairment, rather than a prerequisite hospital stay.

The other statements accurately reflect key aspects of LTC riders. They enhance a life insurance policy by providing additional coverage specifically for long-term care expenses that may arise as one ages or due to chronic illnesses. LTC payments can indeed be disbursed while the insured is still living, which allows policyholders to utilize their benefits for necessary care without waiting for end-of-life situations. Furthermore, LTC benefits can be accessed in various settings, including in-home care and assisted living facilities, which affords flexibility in the type of long-term care that can be received. This comprehensive view of LTC riders helps clarify the essential features and functions of these policy components.