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Planning Intermediate: Is Long-Term Care Insurance Appropriate for You?

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1.
The best way to determine how much long-term care insurance to purchase is to _______.
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Use a financial planning process to project future income, assets, and needs. How much you can afford for long-term care insurance should be part of your financial planning.
2.
Which of the following is probably the most effective way to explore financing long-term care insurance premiums?
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Talk with a financial planner. A financial planner can assess your needs and your situation and help you find ways to finance premiums.
3.
Which of the following is true about waiting to purchase long-term care insurance?
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All of the above are true. While you may save money on premiums if you buy the insurance closer to when you actually need it, premiums will be higher and you run the risk of becoming uninsurable.
4.
Under some circumstances, a long-term care insurance policy can meet a policyholders needs in ways that are not specifically defined in the policy.
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True. The policy can do this if it has an alternate plan of care feature in it.
5.
The term SELF-INSURED refers to _______.
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Persons who pay their own long-term care costs out of pocket. Persons who pay their own expenses are said to be self-insured.
6.
If long-term care coverage is made available in the future by the government, existing policies could become less valuable as a result.
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True. The redundancy would render existing policies less valuable.
7.
As with life insurance, you are virtually guaranteed to get your money back in benefits if you keep your long-term care policy long enough.
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False. As with homeowners, auto, or other insurance policies, it is quite possible to pay premiums for years and never make a claim.
8.
Which of the following is the largest state-federal welfare program paying for long-term care today?
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Medicaid. Medicaid is the state-federal welfare program that presently pays for the largest portion of the nursing home care in America.