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

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1.
With a long-term care insurance policy, you are always assured of having a claim covered.
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False. Like virtually all types of insurance, long-term care policies have limitations on coverage.
2.
An "alternate care plan" feature in a long-term care policy _______.
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Allows payments for facilities and services that are not specifically defined or otherwise covered under the policy. An alternate care plan benefit allows payments for facilities and services that are not specifically defined or otherwise covered under the policy.
3.
Some advisors recommend setting up a "dedicated" fund to pay for long-term care insurance premiums for the remainder of your life because _______.
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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.
4.
The purpose of state partnership programs that promote long-term care insurance is to _______.
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Offer some asset protection to those who buy long-term care insurance but need to go on Medicaid anyway. These programs are meant to encourage people to buy long-term care insurance.
5.
It is conceivable that long-term care services could be made universally available by the government.
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True. Medical and long-term care facilities and services, along with the role of government, have undergone big changes over the years. At the least, it is conceivable that long-term care could be made more available by the government in the future.
6.
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.
7.
Long-term care insurance premiums are the same for everyone and are therefore easy to determine.
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False. There are many factors involved in setting premiums. You will probably need personalized quotes.
8.
You can wait until you need long-term care insurance before you buy it.
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False. This is too much of a risk for insurance companies to bear; you cannot do it.