CRPC Long-Term Care Planning 2

Question 1

Which long-term care insurance policy type pays a fixed daily benefit regardless of actual care costs?

Accepted Answer

Indemnity (per diem) policy

Answer

An indemnity LTC policy pays the full daily benefit amount regardless of the actual care costs incurred.

Question 2

What is the primary benefit of a long-term care insurance partnership program?

Accepted Answer

It protects assets equal to LTC benefits paid when applying for Medicaid

Answer

Partnership programs allow policyholders to protect assets equal to the benefits paid by a qualified LTC policy when subsequently applying for Medicaid.

Question 3

Which inflation protection rider is most commonly recommended for LTC insurance buyers under age 60?

Accepted Answer

5% compound inflation

Answer

A 5% compound inflation rider is typically recommended for younger buyers to keep benefits pace with rising care costs over a long time horizon.

Question 4

What benefit structure provides the greatest flexibility by allowing a total pool of dollars to be used across any covered care setting?

Accepted Answer

Pool of money (lifetime maximum benefit) structure

Answer

A pool of money structure provides a total dollar amount usable across different care settings rather than imposing a fixed daily limit.

Question 5

What is a hybrid long-term care product?

Accepted Answer

A combination of life insurance or annuity with LTC benefits

Answer

Hybrid products combine life insurance or annuities with LTC riders so that unused LTC benefits remain as a death benefit.

CRPC - Chartered Retirement Planning Counselor Practice Test

CRPC - Chartered Retirement Planning Counselor Practice Test

CRPC Long-Term Care Planning 2