CRPC Long-Term Care Planning

Question 1

What is the national median daily cost of a private room in a US nursing home?

Accepted Answer

$300

Answer

The national median cost for a private nursing home room is approximately $300 per day, or about $108,000 per year.

Question 2

Which type of care is NOT typically covered by traditional Medicare?

Accepted Answer

Long-term custodial care

Answer

Medicare does not cover long-term custodial care such as assistance with activities of daily living.

Question 3

What role do Activities of Daily Living (ADLs) play in long-term care insurance policies?

Accepted Answer

They serve as a benefit trigger

Answer

Inability to perform a specified number of ADLs (typically 2 of 6) triggers long-term care insurance benefits.

Question 4

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

Accepted Answer

A waiting period before benefits begin

Answer

The elimination period is a time-based deductible (typically 30–90 days) during which the insured pays out-of-pocket before benefits begin.

Question 5

Under which federal provision are premiums for qualified long-term care insurance contracts deductible as medical expenses?

Accepted Answer

HIPAA qualified LTC contract standards

Answer

HIPAA established standards for qualified LTC insurance contracts whose premiums are deductible as medical expenses subject to age-based limits.

CRPC - Chartered Retirement Planning Counselor Practice Test