CSA Financial Aspects of Aging 4

Question 1

A senior advisor is helping a client select a Medicare Part D plan. Which factor is MOST important when comparing plans?

Accepted Answer

The total annual cost including premiums, deductibles, and copays for the client's specific medications

Answer

The total annual out-of-pocket cost for the individual's specific drug regimen is the most relevant factor, as formularies and cost-sharing vary widely between plans.

Question 2

What is the 'elimination period' in a long-term care insurance policy?

Accepted Answer

The number of days the insured must pay for care before benefits begin

Answer

The elimination period is a deductible measured in days during which the policyholder pays for care out-of-pocket before the insurance begins paying.

Question 3

Which of the following qualified accounts is NOT subject to Required Minimum Distributions (RMDs) during the account owner's lifetime?

Accepted Answer

Roth IRA

Answer

Roth IRAs are not subject to RMDs during the owner's lifetime, making them a valuable tool for tax-efficient estate planning.

Question 4

A client aged 65 is newly eligible for Medicare but is still covered by employer group health insurance. What is the PRIMARY rule about Medicare and employer coverage?

Accepted Answer

If the employer has 20 or more employees, the employer plan pays primary and Medicare pays secondary

Answer

For employers with 20+ employees, the employer group health plan is the primary payer and Medicare is secondary; the reverse applies for employers with fewer than 20 employees.

Question 5

A 78-year-old client wants to make a charitable gift and reduce her RMD impact. Which strategy achieves both goals?

Accepted Answer

Qualified Charitable Distribution (QCD) from her IRA

Answer

A Qualified Charitable Distribution (QCD) allows IRA owners age 70½ or older to transfer up to $105,000 annually directly to charity, satisfying RMD requirements without increasing taxable income.

Certified Senior Advisor Exam Practice Test

Certified Senior Advisor Exam Practice Test

CSA Financial Aspects of Aging 4