Long-Term Care Planning Flashcards
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Read the first 6 Long-Term Care Planning flashcards as text
What is the key difference between 'custodial care' and 'skilled care' in long-term care?
Answer: Skilled care requires medically necessary services by licensed professionals; custodial care assists with ADLs and does not require clinical training
Skilled care involves medically necessary services provided by licensed professionals (nurses, therapists), while custodial care involves personal assistance with ADLs and does not require clinical expertise.
What is the Federal Long-Term Care Insurance Program (FLTCIP) and who is eligible?
Answer: A group LTCI program available to federal employees, retirees, and their eligible relatives
FLTCIP is a group long-term care insurance program available to federal employees, annuitants, active and retired uniformed service members, and qualifying relatives.
How does an inflation protection rider in an LTCI policy benefit the insured?
Answer: It increases the daily benefit amount over time to keep pace with rising care costs
An inflation protection rider automatically increases the daily or monthly benefit to account for rising care costs, preventing benefit erosion over a multi-decade retirement.
What is a 'partnership LTCI policy' offered in many US states?
Answer: A state-sanctioned policy that allows policyholders to protect additional assets from Medicaid spend-down equal to the benefits paid out
State Partnership LTCI policies allow policyholders who exhaust their insurance benefits to protect assets from Medicaid equal in value to the benefits paid, reducing the spend-down requirement.
What is the primary concern when recommending a client self-insure for long-term care costs?
Answer: The client must have sufficient liquid assets to absorb potentially $300,000+ in care costs without depleting their estate
Self-insuring for LTC requires a large enough asset base to absorb potentially catastrophic costs without jeopardizing the financial security of a surviving spouse or estate goals.
What is an 'aging in place' strategy, and what financial tools can support it?
Answer: Remaining in one's home as long as possible; supported by home care services, home modifications, and reverse mortgages
Aging in place means remaining in one's own home as long as safely possible, supported by home care services, home modifications (grab bars, ramps), LTCI, and potentially a reverse mortgage.