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Planning Intermediate: How Long-Term Care Insurance Works

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1.
Long-term care insurance premiums are guaranteed to remain level for the life of the policy.
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False. Long-term care premiums can be changed for a class of policies if approved by the state insurance commissioner.
2.
Which type of long-term care policy pays benefits from a pool of funds based upon the amount of the claim?
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Reimbursement. Reimbursement policies pay benefits based upon the amount claimed and the pool of available funds.
3.
Which benefit option would you consider if you were concerned about having to surrender your long-term care policy after many years of premium payments?
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Non-forfeiture-benefit. This option is intended to ease some policy buyers' worries about their ability to pay for long-term care (LTC) insurance in the future.
4.
Which type of long-term care policy pays benefits at the beginning of the elimination (waiting) period?
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Neither. The elimination or waiting period must expire before benefits are paid.
5.
Which of the following best describes the maximum daily benefit that a long-term care insurance policy provides?
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The maximum the policy will pay for any day that you are eligible for benefits. The maximum daily benefit is the maximum the policy will pay for any day that you are eligible for benefits.