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

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
An "alternate care plan" feature in a long-term care policy allows payments for facilities and services that are not specifically covered under the policy.
Choose wisely. There is only one correct answer.
True. The "alternate care plan" feature is a way of meeting a policyholders needs, as long as it is done cost effectively.
2.
You can wait until you need long-term care insurance before you buy it.
Choose wisely. There is only one correct answer.
False. This is too much of a risk for insurance companies to bear; you cannot do it.
3.
To determine how much you will need to set aside to pay for your long-term care expenses, you should take into account all but which of the following?
Choose wisely. There is only one correct answer.
Current long-term care premiums. These will not help you determine how much you will need for long-term care expenses.
4.
Some advisors recommend setting up a "dedicated" fund to pay for long-term care insurance premiums for the remainder of your life because _______.
Choose wisely. There is only one correct answer.
When you retire you may not have sufficient income to maintain paying premiums on your long-term care policy. While these may all be good reasons to save, the purpose of LTC insurance is to minimize depletion of your income and assets for long-term care costs by pooling of assets, which works only if you maintain the premiums.
5.
What will be the value of a long-term care policy purchased today if the government makes long-term care a benefit for all people?
Choose wisely. There is only one correct answer.
It will likely become less valuable. It may become redundant and of little or no value.
6.
Medicaid provides long-term care services to those who _______.
Choose wisely. There is only one correct answer.
Are impoverished. Medicaid is only for those living in poverty.
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.
Choose wisely. There is only one correct answer.
False. As with homeowners, auto, or other insurance policies, it is quite possible to pay premiums for years and never make a claim.
8.
The term SELF-INSURED refers to _______.
Choose wisely. There is only one correct answer.
Persons who pay their own long-term care costs out of pocket. Persons who pay their own expenses are said to be self-insured.