What's Your LTCi-Q? Answers

True or False

1. Most Long Term Care is provided in a nursing home. False

2. Nearly 40% of the long term care population is under age 65. True

3. On average, the expense for 20 years of LTCi coverage is less than one year's cost for long term care in any setting. True

4. People have to spend all or most of their assets to qualify for Medicaid benefits. True

5. 80 percent of nursing home patients are women. True

6. Long term care will help an individual improve or correct a medical condition. False

7. The cost for a one-year stay in a nursing home is, on average, about $30,000. False ($70,000 - $100,000)

8. The sales of LTCi increased in 2007 over 2006. True

9. LTCi can be offered to employees in a cafeteria plan. False



Multiple Choice

1. The average annual premium for LTCi is what percentage of one's annual income?
    d) 7%

2. What percentage of long term care occurs in a nursing home?
    c) 15%

3. What are the odds that, at age 65, an individual may need long term care?
    e) 61%

4. What is the maximum number of days that Medicare pays for skilled nursing facility patients?
    d) 100

5. What percentage of care occurs in an assisted living facility?
    e) 10%

6. What percentage of people who need long term care are under the age of 65?
    d) 40%

7) An individual needing LTC will stay in a nursing home, on average, for:
    c) 2-3 years



Choose the correct responses:

1. Compared with older men, older women are:
    a) Three times more likely to live alone
    b) More likely to spend a longer time being disabled
    c) Twice as likely to live in poverty
    d) All of the above
    e) None of the above

2. What is NOT consider to be long term care according to HIPAA?
    a) A person with Alzheimer's who needs daily supervision
    b) Someone who needs help dressing every day
    c) Someone who is will need daily assistance for 60 days due to knee surgery
    d) A stroke survivor who has a six month plan of custodial care until expected recovery

3. Partnership legislation was developed for all of the following reasons except:
    a) Keep Medicaid costs down
    b) Preserve a claimant's assets
    c) Promote self-responsibility for long term care costs
    d) Preserve a claimant's income

4. Which type of business entity can deduct the full LTC premium regardless of age or ownership?
    a) Partnership
    b) C Corporation
    c) S Corporation
    d) LLC
    e) All of the above

5. Hillary, age 52, owns more than 2% in a Sub S corporation. What portion can she deduct of her company LTCi premium?
    a) The entire premiume
    b) Age based premium from the taxable year's HIPAA table
    c) Up to $3,080 in 2008
    d) 60% of the premium
    e) None of the premium because she owns more than 2% of the company

6. Most people buy LTCi because:
    a) Protect their assets
    b) Pay for the high cost of long term care
    c) They watched one or both of their parents spend all their money on long term care
    d) Maintain their independence
    e) All of the above

7. A comprehensive LTCi policy pays for qualified claims in all but the following setting:
    a) at home
    b) in an assisted living facility
    c) a long stay in a hospital
    d) in a nursing home
    e) in a specialized Alzheimer's Day Care

8. Some insurance companies have had to increase their premiums on in force policies because of all but:
   a) Lower interest rates on investments
   b) High persistency levels
   c) Higher incidence of claims
   d) Inexperience in the market led to pricing mistakes early on