“The six best friends of You and I –
are Who, How, What, Where, When and Why.”
(In keeping with the “Friends” concept, most headings are in question format.)
Note: Throughout this text rather than use the clumsy gender designation as he/she, his/her, himself/her self, etc., the masculine gender is used for simplicity. There is no intent to diminish the contributions of those of the female gender to the insurance industry or implication that they contribute less than do those of the male gender.
People are living longer – surprise, surprise. This is the good news. The bad news is that because people are living longer, there are more ill older-generation people than ever before. Whereas people used to look forward to living long enough to retire at age 65, now they anticipate living for another 20-30 years. Now, when people think about getting older, they worry about what they will do in their “golden years.”
Each generation is a little wiser than the preceding generation, and even though many of their worries are the same, the later ones have the advantage of building upon the knowledge of the previous generations. One thing that many - if not most - have learned is the need for planning. Many have seen family and friends become disabled because of illnesses or accidents in their later years, and they are also aware that there will be care needed for the older folks as their health deteriorates.
Bill has just turned 65 and has retired. His wife, Ann, is now 63, and they have three children, all married with children of their own. Bill’s mother typically outlived her husband, Bill’s father, and has recently moved into an assisted living facility as she has difficulty in “getting around.” One of their grandchildren is autistic and required a lot of attention from her parents – her mother had to give up working to take care of the child. Their son is struggling financially as he has two children in college, one of which will go to law school if there is any way that he can afford to do so. Their daughter has a happy family, with a good husband and three lovely children. All-in-all, each of their children is totally wrapped-up with their own family matters and Bill or Ann would not want to disturb those situations under any circumstances.
Bill remembers visiting with his grandfather in an “old folks home” when he was small and his memory is that the place where his grandfather stayed smelled “funny” and was full of people who seemed to have no place to go or nothing to do, and every visit was depressing. Bill decided that he never would go to a place like that to stay.
Ann’s parents have a “plan” for such contingencies; one that they feel would serve them quite nicely. Her parents are in their early 70’s and are just now ‘starting to slow down.” Her father has difficulties in walking any distances at all and her mother is terribly forgetful, so she has to check on her parents very often. Their plan, which they have just now started to fulfill, is to sell their house – it is way too large for them now anyway. They want to be “independent” so they do not want to move to any kind of place that “does for them.” They cannot stand the thought of not being independent. Therefore, they are planning on buying a small house or condominium in an area where they can walk to the grocery store, Wal-Mart and Applebee’s. They will use the money that they get from the sale of their house so that they will not have a mortgage, and whatever is left over will provide additional funds to supplement their Social Security and a small pension that her father has. That, in a nutshell, is their plan.
For Bill and Ann, there must be additional planning because if either of them become incapacitated, they are going to have to take care of themselves as they would never impose on their children to help as they are all busy raising their own families. If they have sufficient funds to make it worthwhile, they could use the services of an estate planner so that the surviving spouse will not be hit with a large tax burden. Trusts could be established so that the funds will be used to the best advantage of each other and their children when they both pass on, or are not able to handle their own financial matters. Perhaps they may want to use the services of a financial planner also, especially if their income is derived from various sources or they are invested in the stock market or similar investments.
What does this have to do with Long-term Care Insurance (hereinafter referred to as “LTCI”)? To jump ahead a little, in those situations where a financial planner or an estate planner becomes involved:
F there have been, and will probably continue to be, lawsuits involved where a financial planner, estate planner, or sometimes, just an insurance agent – does not make the client aware of the availability and advantages of Long-term Care Insurance.
Heirs who anticipate inheriting sizeable estates will be quite offended if they learn that the estate has been diminished by nursing home and/or other long-term care expenses, and that the “professional” who assisted in the estate or financial planning, did not make the estate owner aware of such a program.
Actual situation with real people (actual names not used): Velma was a widow with a small pension and a small monthly stipend from a daughter (who had married into a wealthy family). She had two sons still living when she retired, and a daughter. One son had an excellent job and had several children, but his ability to contribute to his mother’s care was limited. One of her sons, David, had been injured in an elevator accident when he was in his early 20’s, leaving him unable to perform hard work for any period of time – and he later was injured working at a service station, further damaging his legs. Unfortunately, he had terrible lawyers so he did not receive any funds other than the medical care needed for each accident. He had never married, and lived at home with his mother.
Upon her retirement, Velma and David moved to Florida and bought a house. They later sold the house and moved into a condominium as they did not want yard work and maintenance. David was able to get low-paying jobs only, but between them, they had what they needed and enjoyed life. Occasionally, the wealthy daughter would fly her mother to New York for a shopping trip for a few days, and she had a box at the baseball stadium where Velma used to live – Velma loved her Cardinals.
Eventually, Velma suffered several small strokes, with the result that her health deteriorated rather rapidly. David found that he could not work and simultaneously take care of his mother, so his brother (who lived 1500 miles away) would send them money when he could. Eventually, David moved his bed into the same room as his mother (who had a hospital bed) and provided 24-hour, 7 days a week. Medicare helped with some visitation by home health care nurses, but their care was limited, so except for the rare occasion when a cousin would drive 70 miles to help over a weekend, David was confined to the condominium. His everyday duties were continual, everything from feeding his mother, bathing her, changing her clothes, cleaning the condo and doing the laundry (he had to get a washing machine hooked to the sink in the kitchen as he could not leave her long enough to go to the condo laundry room). A couple of times a week, friends and neighbor would do his grocery shopping for him. This continued for five years before she finally passed in her sleep.
David is a member of the “Sandwich Generation.” They are called this because in addition to their own needs, they are burdened with the responsibility of caring for their own parents. Think of what would have happened had David been married and had children! There just are not enough hours in a day to care for an invalid parent plus other family responsibilities. At least David did not have to worry about a wife or children, although he may have eventually had his own family life if he had not had to take care of his mother so extensively for so long a period of time.
Recent studies show that seven million people in the United States work as unpaid caregivers and seventy-five percent of them are women (and the majority of them are daughters-in-law). The National Family Caregivers Association has conducted many studies and these studies show clearly that caregivers who are fulltime and performing the services (such as David did for his mother) suffer from depression and a variety of physical ailments, notably back pain, besides all of the financial stress arising from these situations.
For those who need long-term care, nursing homes are just one option. For starters, nursing homes are quite expensive and are rather restrictive. While a Respite Center is the “residence of last resort,” a nursing home is the “next-to-last” resort in many cases. There are options where a resident can have privacy and also have available necessary services. There are a variety of names for these places; mostly “assisted-living facilities” is used generally. Assisted living offers a good alternative in many cases to a nursing home or to a residence where the person is totally independent.
For those with the necessary funds, there are “life care communities” that can reduce substantially any need for LTCI. Usually these “communities” – which can take the form of a multi-story all-purpose building, to “town houses” and other community type of residences. However, as indicated, they are expensive. It would be fair to say that anybody who can afford such facilities can afford long-term care, so they would not be receptive to purchasing insurance to provide what they can provide out of their own pocket. Many require an immediate payment in addition to monthly fees. Many have medical personnel on-site, and provide transportation for physicians and for other medical and support services.
There are other subsidized senior housing areas, which may be apartments or condominiums in most cases, designed specifically for those with low to moderate incomes. Some of them – certainly not all of them – offer assistance to residents, even though the residents may live independently otherwise. Many retirement communities offer care and many are continuing care communities that offer options, such as independent living facilities to skilled nursing care.
As a suggestion, and as a note of warning, anyone considering any of these living arrangements must investigate thoroughly (or have a family member investigate for them) as to the best situation. The best way is to simply talk to the residents when they can speak freely and a check with state agencies that regulate such facilities as to whether there have been complaints – and if so, how often and what kind –filed against them. Often they have records of the results of inspections of the facilities. Note: It is part of the duties of any person who sells LTCI to be familiar with nursing homes and other such facilities in the geographical area in which their clients reside.
If is also wise to ask about extra fees and the charges for services in any of these facilities, particularly in the nursing homes. If the facility advertises “from” prices, be aware that these prices usually do not include all of the services that are available and are described in the marketing materials.
Home Health Care may be alternative to nursing home care, and it is simply care that is provided at home which allows a person to remain in familiar surroundings and to be more independent. Conversely, institutional care is generally the last resort and is usually necessary only if the individual needs continual professional attention. According to HIAA, 70% of elderly people currently receive long‑term care at home from family or friends. An interesting fact is that the categories of people, other than professionals, who provide the most home-care, are daughters-in-law.
Respite Care is designed so as to give a caregiver a rest. A primary caregiver needs a break from the everyday strain of providing long-term care and respite care is provided by nursing homes and assisted living facilities, always for a fee. This type of care may be covered by a LTCI policy, as discussed later.
Adult Day Care Centers are often run by non-profit organizations, and frequently the cost is determined by the ability to pay. They are run on the same principles as day care for children and are used mostly by those caregivers who work during the day but provide care for the individual during the evenings and nights and on weekends.
Foster Care is patterned after foster care for children. An individual with long-term care needs lives with a person who can help with the activities of daily living (discussed in detail later). There are government programs that will pay for, or help pay for, these services; otherwise the individual in the foster care will pay for these services.
Hospice Care provides care for the dying and their families, often provided in the home or in a comfortable setting in an institution. These patients have a life expectancy of six months or less as a general rule. The hospice worker not only provides care for the dying, but provides solace and emotional assistance to family members.
Many states require that a Long-term Care Insurance define such providers of service, including, but not limited to:
(1) skilled nursing facility;
(2) extended care facility;
(3) intermediate care facility;
(4) convalescent nursing home;
(5) personal care facility; and
(6) home care agency;
and they are defined in relation to the services and facilities required to be available and the licensure or degree status of those providing or supervising the services. The definition usually requires that the provider be appropriately licensed or certified.
When the concept of assisted living started in the mid-1980s in the US and it was touted as a dignified alternative to nursing homes. What seemed to make it attractive was a well-appointed private apartment (instead of a fluorescent-lighted linoleum-covered hallway). The monthly costs averages $2524 nationwide, with much higher costs in some wealthy communities. They include a common dining room, transportation, housekeeping, activities meant to relieve isolation, and a la carte serves for changing personal care and medical needs.
Over the last ten years, the number of elderly citizens in country in assisted living facilities has tripled to nearly 1 million today. These residents are primarily widowed women with average age of about 85 and they have grown steadily older and frailer. A study by the National Center for Assisted Living, according to an article in the NY Times in January, 2005, shoed that half of the residents have some sort of cognitive impairment, three-fourths need assistance in bathing, eighty percent need assistance in administering their medication, and more than 90 percent can no longer cook or do housework.
Those who leave assisted living facilities do so because they are running out of money, sop they go to nursing homes where the impoverished, which includes formerly-middle-class men and women who outlived their savings, are covered by Medicaid.
While assisted living may appear at first blush to be much like living at a resort or a fancy hotel, the reality is that the older people are aware that they have a much more bleaker life, and so they don’t like it and take their frustrations out on others who are more impaired than they are, the facility staff and the quality and quantity of food – and about anything else they can find to complain about. But leaving an ALF, on the average of after 2 ½ years, is very rarely voluntary. Some die, others will go to nursing homes when their money runs out (which will charge them an average of 40% more but which will accept government reimbursement/Medicaid.
Those in the ALF industry highly recommend that the families who have elderly relatives that need assistance, to calculate how much money they have and when that money will run out before they have to leave the ALF to go to a nursing home. Nursing homes, they maintain, if they have high enough percentage of Medicaid patients, can push those with assets to the top of the waiting list.
Therefore, it would be safe to assume that if an LTCI policyholder was in an ALF, the nursing home would be more than happy to put them on the top of their list so they would not have to wait before getting into the nursing home.
Many, if not most, services offered to the patient and the caregiver are considered as “long-term care,” although it is important to distinguish between the various levels of long-term care.
Skilled nursing may be covered by Medicare, which includes nursing care, occupational of physical therapy, blood pressure monitoring, etc. Skilled nursing is uniquely the highest level of care and such care can be performed only by or under the supervision of skilled medical personnel. Skilled nursing care must be provided pursuant to a physician’s orders and must follow a treatment plan. In some situations, it may be performed in the person’s home, but in all cases, it must be available 24 hours a day. Also, it often may be an alternative to hospitalization for some acute medical conditions.
Medicare does not pay for 24-hour care in the home; only if the care is performed in a skilled nursing facility. For LTCI policies, the policy may not have this requirement as they usually define skilled nursing care as care performed by a registered nurse (RN) or a licensed practical nurse (LPN), and usually, physical therapy, respiratory therapy, and other such services are considered by the insurer to be skilled nursing care.
Intermediate care includes occasional nursing or rehabilitative care for a period of less than 24-hours per day, usually for stable conditions. It still must be performed by or under the supervision (some policies require “direct” supervision) of skilled medical personnel and under the orders of a physician. This care is “occasional care,” as the services are not provided daily.
Care may be provided at home, in an assisted living facility or in a nursing home. In some situations, Medicare will cover these services.
Custodial care is the “lowest level” of care and is provided simply to allow the patient to function from day to day. This is an important category as LTCI is designed to provide such services, and such services are not covered under Medicare.
Basically, custodial care includes assistance in the activities of daily living (ADL) For the purposes of LTCI, the state may dictate these "activities of daily living" to include each of the following items:
(1) Eating. ) "Eating" means feeding oneself by getting food into the body from a receptacle, feeding tube, or intravenously
(2) Transferring. "Transferring" means moving into or out of a bed, chair, or wheelchair.
(3) Dressing. "Dressing" means putting on and taking off all items of clothing and any necessary braces, fasteners, or artificial limbs
(4) Bathing. "Bathing" means washing oneself by sponge bath in a tub or shower, including the task of getting into or out of the tub or shower.
(5) Toileting. "Toileting" means getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.
(6) Continence. "Continence" means the ability to maintain control of bowel and bladder function or when unable to maintain control of bowel or bladder function the ability to perform associated personal hygiene, including care for catheter or colostomy bag.
These levels of care are defined differently by various insurers, but in general they refer to any personal care not covered in those shown above. “Homemaker Care” is the term most often used, and includes shopping, menu planning, meal preparation, light housekeeping, vacuuming, dusting, changing linen, and other such light chores. “Chore Care” when used in an LTCI policy includes the Homemaker Care duties, but also other duties such as cleaning attics and basements, lawn care, minor home repair, and other household chores. “Personal Care” can vary by definition from the typical ADLs to specified services in some policies which may include bedpan, foot care, denture care, shaving and grooming, etc. The definitions vary, so it is most important to be well acquainted with the definitions as to these services as they appear in the LTCI policy.
In recent years there has been greater acknowledgment of and response to the fact that, not only do different situations require different levels of long‑term care, but also, people often need various levels of care at different times. This has been referred to as a "continuum of care" concept. For example, an individual might need a short period of 24‑hour medical care after an illness, followed by a longer period of intermittent medical attention, followed by still another period when the only care required is help getting in and out of bed, and finally, recovery.
Studies by CMS (formerly HHS) and HIAA indicate that as many as nine million older Americans presently needs some type of long‑term care, either in an institutionalized setting or at home. While CMS says that up to 45% of everyone who turned 65 in 1993 will stay in a nursing home at least once in their lifetime, most needs for such care are short‑term.
About 50% will stay in a nursing home for less than six months and only 20% will be in a nursing home for a year or more, 10% for three or more years. While these figures are encouraging, the Census Bureau says that the average nursing home confinement is much longer ‑ about two and one‑half years. This high average occurs because some people are confined for a very long time, perhaps for the rest of their lives. Any one person can take comfort from the fact that his or her individual chances of long‑term confinement are small, but no one can know for sure who will require a lengthy confinement.
Women fare worse than men, according to the Census Bureau – primarily as women usually live longer then men. Of all men, 14% will spend at least one year in a nursing home. But nearly a third of all women can expect to be confined to a nursing home for at least a year.
FNOTE: It should be noted that in this text “Long-term Care Insurance” (LTCI), means an “insurance” product or policy. Long-term Care (without the “Insurance”) is the treatment, care or application of care to a person needing such services and is NOT INSURANCE. It is absolutely essential that the difference be clear as experience has shown that policyholders who are aged and need care, and not knowing where else to go, may assume that their policy is going to tell them where to go, what to do, and how to do it. The benefit of services performed by a “Care Coordinator” or “Care Manager” helps to alleviate some of the confusion. A professional will always refer to the policy as Long-term Care Insurance, and never just “Long-term Care.”
Long-term Care Insurance (LTCI) is a relatively new Health Insurance product. Originally called "Nursing Home Insurance", the policy has evolved over the past 20 years to include many other benefits, other than simply paying a daily amount while the insured is in a Nursing Home.
Shortly after the Nursing Home Insurance policy was introduced, a need for a policy covering home health care was devised. The original Home Health Care policy was simply a daily amount paid if the insured was unable to leave their home for health reasons, etc. The daily amount needed for Home Health Care was less than that needed if the insured was in a Nursing Home, so the premiums were lower. The lower cost, plus the desire of most senior citizens to stay at home if they became disabled, led to the popularity of the Home Health Care policy.
Many companies in this field then integrated the Home Health Care benefits with Nursing Home benefits. The amount payable for Home Health Care (HHC) was either a selected daily maximum, or a percentage of the Nursing Home daily benefit (80% or 50% were the most popular amounts). These policies became known as "Long-term Care” (LTCI) insurance policies. Added benefits were created, such as Assisted Care Facility benefits, Adult Day care, Caregiver Training, Bed Reservations, etc., as described below.
Of recent invention was the calculation of Home Health Care or Nursing Home Care, or other benefits of the LTC Insurance policy, as a "Pool of Money", “Pot of Money” or “Lifetime Payment Maximum” (usually referred to as “Pool of Money” in this text) or similar names, instead of a chosen daily benefit and length of time the benefits are to be paid. One of the problems involved in LTCI policies that allowed a choice of the HHC benefit amount, or a HHC "stand‑alone" policy, was that the applicant had to guess as to whether they could become ill and go directly into a Nursing Home; or whether they could become disabled and stay at home; or any combination thereof. The recent development offered a fixed amount to be paid throughout the life of the policy (unless the applicant chose Lifetime Benefit Period, a rather expensive choice). This amount is determined by multiplying the Benefit Period (stated in days) by the Maximum Daily Benefit Chosen. This "pot/pool" could then be used for any of the LTC benefits, until the total amount of the "pot/pool" had been spent. For example, a $100 Daily Benefit, 3 year Benefit Period (1095 days) would create a "pot/pool" of $109,500. When this amount has been spent under any benefit or combination of benefits offered by the particular LTC Insurance policy, the policy was then terminated.
LTC Insurance has become very competitive recently. The National Association of Insurance Commissioners (NAIC) developed a standardized policy form that has been adopted by most, if not all, Insurance Departments. The policy benefits discussed in this text are used in same or similar format and wording, but because there still is a lot of varying benefit forms in the market, plus the possibility of the existence of older type of policies that may need to be analyzed, some of the benefits may not be addressed.
Fortunately the wording of LTCI policies is simplified as the Insurance Departments have insisted on this type of wording when dealing with the Senior citizens.
An HIAA study identified the people who are actually buying LTCI policies by age group, with these results.
These figures indicate that about 19% of buyers are younger than age 65. One factor that has contributed to an increase in younger buyers is growth in the employer sponsored LTCI.
Since it is apparent from statistics that the principal purchasers of Long-term Care Insurance are Senior Citizens, perhaps a few observations of this market would be of benefit. A professional always knows his market, understands them, and has their respect. While agents age 50 and older would have more first-hand knowledge of this market, many of the more successful – indeed, highly successful – LTC Insurance agents, are younger persons. Sometimes it is easier to become a “member of the family” if there are no considerable age differences.
Seniors (for these purposes, defined as those above age 65) are, for the most part, naturally friendly. It is quite true that those from the rural areas, South and Midwest seem to be the most friendly, but those who work with Seniors are invariably friendly themselves, if they are to succeed.
They are extremely trusting. It is amazing how open they will be once they feel that they “know” you. It is no surprise that as a class, they are susceptible to “scam” artists. One must be very careful to always tell the entire truth – most Seniors have lived through “bad times” so if it is necessary to tell them something they may not want to hear, very frequently they understand it and respect the person who had the unpleasant task of informing them of unpleasant facts.
In discussing Long-term Care Insurance, keep in mind that most of them remember the “Old-Folk’s” Home” when they were younger. Those that had friends or relatives in those facilities seldom have any happy images of these institutions, and are eager to talk about Home Health Care, in particular. The most vivid memory many of them have of these homes, is the strong smell of disinfectant and urine. They never want to be in such a place.
Older Americans seem to almost always “want to do the right thing.” It is not unusual for an applicant for Long-term Care Insurance to call and agent at home at night, just to be reassured that they have done the right thing, or to have something explained again. If an agent does not want to be “bothered” in the evenings and on weekends by his clients, then he has no business representing a Long-term Care Insurance company.
Most Seniors know the value of money, with a notable exception, that of the widow who never handled any finances in her married life. It is amazing how many widows are in this situation. When an agent discovers that this is the situation with a proposed applicant, the professionalism must take over. If there are family members, they MUST be called into the discussion, or if there are no family members, or accountants or attorneys helping the widow, carefully document everything that was done, and treat her as if she were your mother. This may sound “corny” but it is good advice.
Family members, friends and neighbors, and, unfortunately, television easily influence Seniors. What ever an agent does, or says, it will be of no avail if family members are not called into the discussion. Unfortunately, many times they will “kill” the sale, as they feel that their mother (or father or parents) do not need Long-term Care Insurance, as they will take care of their parent(s) if and when they need that care. (Besides, it cuts that much into their inheritance). It is beyond the scope of this text to detail how to market to a family member, but the one or two-stop sale has now become a three or four - stop sale.
Seniors are organized and neat, verified by just walking in the door of most homes where Seniors live. There is a place for everything, and everything is in its place. Therefore, any discussion of Long-term Care Insurance must also be “neat”, and orderly. Material illustrating what is said during the discussion should be presented as the subject is approached, orderly, orderly, orderly.
Most Seniors dislike debt. They don’t understand or like credit cards. Hand-in-glove with this is that they hate the thought of being on welfare. Therefore, an insurance policy that would keep them from going on Medicaid – defined as “welfare” – is most important to them.
In today’s society, where both spouses work and sometimes the wife makes more money than the husband and is on an equal footing in most things, many Senior Americans generally run contrary to this. Generally speaking, the husband is better educated than the wife and has spent most of his life being the “breadwinner” – of which he is very proud. Many agents, aware of this, have a tendency to discuss Long-term Care Insurance directed at the husband. It is imperative that the wife be not only brought into the discussion, but most of the discussion is to her, as in most cases (and they are aware of this) the wife will outlive the husband. Therefore, the Long-term Care Insurance policy is really for the benefit of the wife.
Most Senior Americans are conservative in religion and politics, but DON’T ever speak disparagingly about Medicare or Social Security. Professional Long-term Care Insurance agents are very well informed about Medicare and Social Security, and can talk intelligently about it with the Seniors.
One last item – Senior Americans as a class, are prompt. They certainly understand better than anyone does, if an emergency arises, especially a family emergency (bring pictures of your kids or grandchildren). But otherwise, be on time – not too early as they will always “straighten up” when “company” is coming.
And remember, God willing, everyone will be a Senior American some day. And also remember that state laws are very severe if anyone mistreats, abuses, or browbeats a Senior Citizen.
STUDY QUESTIONS
1. In respect to long-term care needs, people are living longer, therefore
A. taxes should go down.
B. people can look forward to living to the ripe old age of 75.
C. they are healthier so long-term care will not be needed.
D. there are more older generation people who are sick than ever before.
2. If an estate or financial planner does not make his client aware of the availability of LTCI,
A. he is performing properly as he cannot, by law, be both financial planner &
agent.
B. he may be sued later by the heirs.
C. that is OK as they cannot think of everything.
D. it makes no difference as LTCI has no business in financial planning.
3. Bruce is a member of the “sandwich generation,” which means
A. they are great supporters and users of fast food.
B. that they are on a low-cab diet.
C. in addition to their own needs, they have the responsibility of caring for their
own parents.
D. they are more apt to have children between ages 30 – 40.
4. Life care communities
A. can reduce the need for LTCI.
B. increase the need for LTCI.
C. have no relationship to long-term care as they are for younger people.
D. are fully funded and supported by Medicare.
5. The provision in a LTCI policy that gives a caregiver the opportunity to take a rest from their duties in providing long-term care, is
A. Foster Care.
B. Respite Care.
C. Restoration of Benefits.
D. Hospice Care.
6. Occasional nursing or rehabilitative care for a period of less than 24-hours per day, is
A. Custodial Care.
B. Respite Care.
C. Skilled Nursing Care.
D. Intermediate Care.
7. Providing assistance in the activities of daily living is
A. Custodial Care.
B. Respite Care.
C. Skilled Nursing Care.
D. Intermediate Care.
8. Of all men, about 14% will spend at least one year in a nursing home, but for women in a nursing home,
A. about half of them will be so confined for more than a year.
B. about a quarter of them will be so confined for more than a year.
C. a third of all women can expect to be confined for more than year.
D. an infinitesimal amount of women will be confined for more than a year.
9. The wording of LTCI policies has been simplified because
A. of the influx of older illegal immigrants.
B. people are getting more ignorant.
C. insurance departments have insisted on this wording to help senior citizens under
the complexities of the policy.
D. policies are now issued by computers.
10. Recent studies have shown an increase to about 20% of all purchasers of LTCI are under age 65, and one reason is
A. the increase of employer-sponsored LTCI.
B. companies have discouraged the sale of the policy to those over age 65.
C. premiums and benefits are not tax-protected for policyholders under age 65.
D. poor development of statistics.
ANSWERS TO STUDY QUESTIONS
1D 2B 3C 4A 5B 6D 7A 8C 9C 10A