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

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1.
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.
2.
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.
3.
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.
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True. The "alternate care plan" feature is a way of meeting a policyholders needs, as long as it is done cost effectively.
4.
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.
5.
Long-term care policies today are much like the ones sold 15 to 20 years ago.
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False. LTC policies sold today are quite different from those sold 15 to 20 years ago.
6.
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.
7.
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.
8.
If you transfer assets to others in hopes of qualifying for Medicaid, the state will check up on you.
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True. The state provides lookback periods in which it checks to see whether you are being paid for the assets you transfer.