Long-Term Care (LTC) Insurance 9
Depending on the types of services required and rendered, what is the annual cost of long-term care?
$40,000 to $100,000
Hector's long-term care policy has a 30-calendar-day elimination period and pays a $200 daily benefit. On March 1, his doctor certified that he needed long-term care assistance, and a home health aide began coming to his home every day, at a cost of $100 per day. Ninety days later, Hector improved and no longer needed such care. What amount of benefits will his policy pay?
$6,000
Which of the following best illustrates what makes a state's long-term care partnership policy different from other long-term care policies?
A partnership policy holds tax-favored status.
an example of formal care in the context of long-term care?
Dennis performs homemaker chores through an agency.
Which statement is correct about the dollar amount of the per diem limitation in a long-term care policy?
It can increase annually.
All of the following appear to indicate a need for long-term medical care EXCEPT:
Lucy, who is on bed rest for two weeks after a severe back sprain
Which of the following accurately describes differences between tax-qualified and non-tax-qualified long-term care insurance plans?
Medical necessity cannot be a benefit trigger under tax-qualified LTC plans.
What deficiency in Medicare or Medicaid coverage makes long-term care insurance necessary?
Medicare supplement policies cover the daily co-payments for nursing home expenses but not beyond Medicare's 100-day benefit period.
3 levels of long-term care.
Skilled Nursing care, Intermediate care, Custodial care,
Which of the following levels of long-term care provides continuous, 24-hour care delivered by licensed medical professionals, under the direct supervision of a doctor or physician?
Skilled nursing care
Which of the following statements about long-term care insurance (LTC) and long-term care services is correct?
The cost of long-term care services can easily be more than one person or a couple can afford.
Agents are required to advise prospective buyers that inflation protection is available for an additional premium cost. What else do insureds need to know about adding inflation protection to their long-term care policies?
The law makes this protection automatic unless the buyer rejects it in writing on the application.
Which statement benefit triggers under a tax-qualified plan is correct?
They are more stringent than those for a non-tax qualified plan.
When Kay moved to the facility where she now resides, she became party to a contract obligating the facility to provide care for her for the rest of her life, whatever the future state of her health, though Kay is currently in good health. The type of facility where Kay lives is most certainly which of the following?
a continuing care retirement community
With a tax-qualified long-term care insurance plan, what are premium payments considered?
a medical expense for federal income tax purposes
Beth is buying a long-term care insurance policy. As with other health insurance policies, she can buy a LTC policy with riders that offer additional benefits. Popular LTC benefit options include all of the following, EXCEPT
benefit periods
Insureds have two options for inflation protection in a long-term care policy. Which option increases the original benefit on a compound interest basis, usually by five percent per year?
compound inflation protection
Perry just turned 85 years old. He lives alone. However, he needs help with everyday tasks such as bathing, eating, and dressing. Which type of long-term care does Perry need?
custodial care
Which of the following levels of long-term care can be provided in nursing homes, adult day-care centers, respite centers, or a person's home?
custodial care
Insurers can sell both qualified and non-qualified LTC policies. What can those who buy qualified policies do?
deduct their premium payments from their federal income taxes within certain specified limits
Which is NOT a type of care covered by long-term care (LTC) insurance?
hospice care
Which of the following levels of long-term care is usually delivered in a nursing home, but depending on the individual case, can also be provided in one's home or a community-based center?
intermediate care
Which of the following levels of long-term care provides ongoing care that is necessary to address a person's condition but is not needed 24 hours a day?
intermediate care
Marty is a widower with no surviving family members. He is concerned about how he will pay for custodial or nursing home care if it is ever needed. Which of the following will provide a significant amount of coverage for this type of care?
long-term care insurance
Felix purchased an insurance policy that will pay benefits if he ever needs long-term care but that also protects a certain amount of his assets from the spend-down requirement if he ever needs to apply for Medicaid assistance. Which type of policy does Felix own?
long-term care partnership policy
Under which of the following type(s) of plans does cognitive impairment NOT require substantial assistance from another person to qualify as a benefit trigger?
non-tax-qualified LTC plans
Which of the following statements about long-term care underwriting considerations is correct?
none is more stringent than those for a non-tax qualified plan, so underwriters issue tax-qualified plans only to healthiest applicants.
A tax-qualified long-term care insurance policy enables policyowners to deduct premiums as a medical expense and to also do which of the following?
receive limited benefits tax free
Which of the following levels of long-term care is almost always delivered in a nursing home?
skilled nursing care
Alice is a long-term care policyowner. Her return of premium option allows her to have a paid-up policy with reduced benefits if she does which of the following?
stops paying the premium
What two types of long-term care insurance policies resulted from the Health Insurance Portability and Accountability Act?
tax qualified and non-tax qualified
HIPAA established that premiums for and benefits paid under tax-qualified long-term care insurance plans receive what type of tax status?
tax-favored status
in 1996 HIPAA created which two categories of long-term care policies?
tax-qualified and non-tax-qualified LTC policies
Benefits under a long-term care policy can be triggered by all of the following, EXCEPT
the insured becoming hospitalized before a policy's benefits are payable
Long-term care (LTC) insurance plans differ in which of the following ways?
the level of care offered and services provided
Individual long-term care insurance policies are generally available to persons in which of the following age groups?
those between the ages of 40 and 85
A primary goal of long-term care is which of the following?
to maintain functionality
Individual long-term care policies are generally available to applicants between the ages of
40 and 85
A long-term care policy cannot contain pre-existing condition limitations or exclusions lasting longer than how many months?
6
Carolyn buys a long-term care insurance policy through her alumnae group. Her policy cannot define a pre-existing condition more restrictively than a condition for which medical advice or treatment was recommended or received by a provider of health-care services within how many months before the effective date of coverage?
6 Months
A long-term care insurance policy provides benefits after the insured satisfies which of the following?
benefit triggers
Which of the following levels of long-term care is provided to help a person meet daily living requirements, like bathing, dressing, or eating?
custodial care
Most long-term care insurance policies have benefit limits defined in terms of the dollar amount that will be paid for any one covered service or services. What are common benefit limits?
flat daily amounts, such as $50, $100, or $200
Dan is applying for a long-term care insurance policy. He selects the benefit period and daily benefit amount. Dan can also select an elimination period. What is the typical range for an elimination period?
from 0 to 365 days
All of the following can deduct the full cost of their qualified long-term care insurance premiums, subject to the age-based limits, EXCEPT:
group participants whose premiums are paid by their employer
Long-term care (LTC) insurance covers all of the following specific types of services EXCEPT:
health services for the poor
Long-term care insurance policies exclude certain conditions from coverage. Common LTC policy exclusions include all of the following EXCEPT
impairment not requiring substantial assistance from another person
Which of the following is not a benefit trigger under a long-term care policy?
inability to live independently
Alex has a long-term care (LTC) insurance policy with a return of premium option. That option returns a part of the premium Alex paid for the LTC coverage to Alex's estate or to a named beneficiary when Alex dies. What is the amount of the premium returned based on?
whether Alex used the policy's benefits and if so, to what extent