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1.
Which type of long-term care policy pays maximum daily benefits regardless of the size of the claim?
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Indemnity. Indemnity policies pay the full daily amount for each day regardless of actual expenses.
2.
What do we call the number of days you must wait after qualifying for long-term care policy benefits before actually becoming entitled to payment from that point forward?
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Elimination period. The elimination or waiting period is the number of days you must wait after qualifying for LTC policy benefits before actually becoming entitled to payment from that point forward.
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.
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.
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.