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1.
There were many problems with early long-term care insurance policies because _______.
Early policy underwriting was faulty due to lack of experience in this new market. Early policies suffered from poor underwriting; several years of additional experience have resulted in sounder underwriting and pricing practices.
2.
Benefits for home-based and community-based care are often paid at _______.
75 percent of the maximum daily rate. Many policies only pay 75 percent of the maximum daily rate for home-based or community-based care services.
3.
During the elimination period, long-term care costs are paid by _______.
The insured. Expenses during the waiting period must be paid by the insured.
4.
When pricing long-term care insurance, your budget is important in _______.
Avoiding a lapse due to failure to pay premiums. If you do not budget properly, premiums could become a hardship or even impossible to pay, resulting in a policy lapse.
5.
The three most important long-term care coverage variables are benefit amount, benefit period, and the alternate plan of care.
False. The three most important LTC coverage variables are benefit amount, benefit period, and elimination period.