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Planning Intermediate: How Long-Term Care Insurance Works

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1.
In long-term care insurance, the term GUARANTEED RENEWABLE means _______.
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The policy cannot be canceled or modified by the company as long as the premiums are paid. As long as the insured pays the premium on time, the insurance company must maintain the policy in force without any change in coverage unless the insured agrees.
2.
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.
3.
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.
4.
Cognitive impairment and physical infirmity are examples of _______.
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Benefit triggers. Benefit triggers include cognitive impairment and physical infirmity.
5.
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.