Long-Term Care Planning Flashcards
6 cards from real CRPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Long-Term Care Planning flashcards as text
Which long-term care insurance policy type pays a fixed daily benefit regardless of actual care costs?
Answer: Indemnity (per diem) policy
An indemnity LTC policy pays the full daily benefit amount regardless of the actual care costs incurred.
What is the primary benefit of a long-term care insurance partnership program?
Answer: It protects assets equal to LTC benefits paid when applying for Medicaid
Partnership programs allow policyholders to protect assets equal to the benefits paid by a qualified LTC policy when subsequently applying for Medicaid.
Which inflation protection rider is most commonly recommended for LTC insurance buyers under age 60?
Answer: 5% compound inflation
A 5% compound inflation rider is typically recommended for younger buyers to keep benefits pace with rising care costs over a long time horizon.
What benefit structure provides the greatest flexibility by allowing a total pool of dollars to be used across any covered care setting?
Answer: Pool of money (lifetime maximum benefit) structure
A pool of money structure provides a total dollar amount usable across different care settings rather than imposing a fixed daily limit.
What is a hybrid long-term care product?
Answer: A combination of life insurance or annuity with LTC benefits
Hybrid products combine life insurance or annuities with LTC riders so that unused LTC benefits remain as a death benefit.
After what age do long-term care insurance premiums and health underwriting typically make new coverage impractical for most consumers?
Answer: After age 70
Premiums increase sharply after age 70 and many applicants face health underwriting declines, making purchase after 70 often impractical.