Chapter Ten: Long-Term Care

Diane is 75 years of age and needs some assistance with preparing meals and bathing. She is the wife of a multi-millionaire. Which of the following policies would you recommend to her?

Long-term care Long-term care policies provide coverage for custodial care. Diane would not be a good candidate for nursing home assistance through Medicaid because she is wealthy.

What level of long-term care is provided to assist an individual with ADLs?

Custodial care Custodial care is provided to assist an individual with ADLs.

All of the following are ways long-term care coverage may be offered, EXCEPT:

AD&D rider Long-term care policies can be issued in several forms. These include: individual policies, group policies, and as a rider on a life insurance policies.

How can a long-term care policy be written?

Both stand-alone policy and rider Long-term care policies may be written as a rider attached to a life insurance policy, or a stand-alone policy.

Which of the following statements about the respite care provision under a long-term care policy is CORRECT?

It pays a benefit for a family caregiver to get away from their duties for a short period of time. Respite care pays the cost of either bringing a substitute provider into the insured's home or moving the insured to a care facility for a period of time. Its purpose is to give an unpaid caregiver (e.g., a spouse or family member) relief from their daily duties.

Most long-term care policies require the insured be unable to perform at least:

2 ADLs Activities of daily living (ADLs) include bathing, dressing, eating, mobility, transferring, toileting, and continence. Most long-term care (LTC) policies specify that an insured must be unable to perform at least two ADLs, or be cognitively impaired.

Which of the following is not a benefit trigger under long-term care policies?

Financial need Financial need is not a benefit trigger for long-term care policy benefits.

Which of the following is an optional benefit under long-term care policies?

Guarantee of insurability Nonforfeiture options Inflation protection Optional benefits under long-term care (LTC) plans include: guarantee of insurability, return of premium, hospice care, nonforfeiture options, and inflation protection.

Which of the following statements about long-term care coverage is CORRECT?

Long-term care insurance provides a broad range of coverage for services rendered at home, at adult care centers, or in nursing homes. Although Medicare and Medicare supplement policies protect the elderly against the costs of medical care, neither covers a significant portion of long-term custodial or nursing home care. Although Medicaid provides some long-term custodial care coverage, only individuals who are almost destitute are eligible to receive benefits. Long-term care insurance provides a broad range of coverage for services rendered at home, at adult care centers, and in nursing homes.

Long-term care insurance differs from Medigap in which of the following ways?

Long-term care insurance provides custodial care.