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

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1.
Medicaid provides long-term care services to those who _______.
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Are impoverished. Medicaid is only for those living in poverty.
2.
Why does long-term care insurance cost less when you are younger?
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The probability of needing long-term care is greater when you are older. Therefore, premiums are higher for older people who buy policies.
3.
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.
4.
Which of the following offers a degree of asset protection for holders of long-term care insurance whose benefits run out?
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State partnerships for long-term care. State partnerships for long-term care offer a degree of asset protection to residents who purchase limited LTC insurance but eventually need Medicaid assistance anyway.
5.
A realistic option that many people could use for paying their long-term care insurance premiums is a dedicated fund.
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True. For many, a dedicated fund of money set aside for long-term care insurance premiums is a viable option.
6.
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.
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.
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.