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Planning Intermediate: How Long-Term Care Insurance Works

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1.
Which of the following benefit extras would pay for professional services provided to give family members who ordinarily provide long-term care a break?
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Respite care. The respite benefit covers the cost of professional care up to a limited number of days to relieve family members who ordinarily provide care.
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.
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.
4.
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.
5.
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.