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

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1.
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.
2.
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.
3.
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.
4.
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?
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Current long-term care premiums. These will not help you determine how much you will need for long-term care expenses.
5.
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.
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.
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.
8.
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.