Long-Term Care Planning Flashcards
7 cards from real CRPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Long-Term Care Planning flashcards as text
A 68-year-old client with mild cognitive impairment wants to purchase long-term care insurance. Which underwriting outcome is most likely?
Answer: Declined or rated due to existing impairment
Existing cognitive impairment is typically a basis for declination or significant rating by LTC insurers because it signals high near-term claim probability.
Which provision in a long-term care insurance policy allows the insured to stop paying premiums if they involuntarily lapse due to cognitive impairment?
Answer: Third-party notification
Third-party notification provisions require the insurer to notify a designated person before lapsing a policy, protecting cognitively impaired policyholders.
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?
Answer: The death benefit is reduced by the amount of LTC benefits paid
In hybrid life/LTC policies, LTC benefit payments accelerate or reduce the death benefit on a dollar-for-dollar basis.
Under the HIPAA standards for qualified LTC insurance, which of the following triggers qualifies a claimant for benefits?
Answer: Inability to perform 2 of 6 ADLs for at least 90 days
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.
Which of the following best describes the 'shared care' rider available on some LTC insurance policies?
Answer: A rider allowing spouses to access each other's unused benefit pool
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.
A client asks about using a Medicaid planning strategy involving gifting assets to qualify for LTC coverage sooner. What is the primary risk of this approach?
Answer: Medicaid's look-back period can trigger a penalty period of ineligibility
Medicaid's 5-year look-back period reviews asset transfers and imposes ineligibility penalties proportional to the value of improperly gifted assets.
Which long-term care setting typically provides the highest level of medical oversight while also being the most expensive form of care?
Answer: Skilled nursing facility
Skilled nursing facilities provide 24-hour medical supervision from licensed nurses and are generally the most costly LTC setting.