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Planning Intermediate: How Long-Term Care Insurance Works

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1.
Which of the following long-term care insurance benefit extras pays for an advocate who assists with developing a plan of care to monitor its performance?
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Care coordinator. The care coordinator assists with developing a plan of care, making arrangements with care providers and monitoring their performance.
2.
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.
3.
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.
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.