CRPC Long-Term Care Planning 4

Question 1

A 68-year-old client with mild cognitive impairment wants to purchase long-term care insurance. Which underwriting outcome is most likely?

Accepted Answer

Declined or rated due to existing impairment

Answer

Existing cognitive impairment is typically a basis for declination or significant rating by LTC insurers because it signals high near-term claim probability.

Question 2

Which provision in a long-term care insurance policy allows the insured to stop paying premiums if they involuntarily lapse due to cognitive impairment?

Accepted Answer

Third-party notification

Answer

Third-party notification provisions require the insurer to notify a designated person before lapsing a policy, protecting cognitively impaired policyholders.

Question 3

A hybrid long-term care product combines life insurance with an LTC rider. What happens to the death benefit if the insured uses LTC benefits?

Accepted Answer

The death benefit is reduced by the amount of LTC benefits paid

Answer

In hybrid life/LTC policies, LTC benefit payments accelerate or reduce the death benefit on a dollar-for-dollar basis.

Question 4

Under the HIPAA standards for qualified LTC insurance, which of the following triggers qualifies a claimant for benefits?

Accepted Answer

Inability to perform 2 of 6 ADLs for at least 90 days

Answer

HIPAA requires inability to perform at least 2 of 6 ADLs expected to last at least 90 days as a qualifying trigger for tax-advantaged LTC benefits.

Question 5

Which of the following best describes the 'shared care' rider available on some LTC insurance policies?

Accepted Answer

A rider allowing spouses to access each other's unused benefit pool

Answer

A shared care rider lets one spouse tap the other's remaining benefit pool if their own benefits are exhausted, effectively doubling coverage for the couple.

CRPC - Chartered Retirement Planning Counselor Practice Test

CRPC - Chartered Retirement Planning Counselor Practice Test

CRPC Long-Term Care Planning 4