1. What is the purpose of a restoration of benefits provision in a long-term car
ID: 360004 • Letter: 1
Question
1. What is the purpose of a restoration of benefits provision in a long-term care insurance policy?
2. What is the purpose of a bed reservation benefit in a long-term care insurance policy?
3. Which of the following statements concerning the benefit period in a long-term care policy is (are) correct?
I. It begins after the elimination period is satisfied.
II. The number of days in the benefit period is multiplied by the policy’s daily benefit to determine a pool of money if such an approach is used for benefit payments.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
4. Which of the following statements concerning the effect of NAIC model legislation for long-term care insurance policies is (are) correct?
I. Insurers must offer the applicant the right to purchase some type of inflation protection.
II. Insurers must base benefit eligibility on a prior hospitalization requirement.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
5. Do you think you need a long-term care policy? Why or why not?
Explanation / Answer
Q1) The purpose of restoration of benefits provision in a long-term care insurance policy is to restore the benefits exhausted for an insurance claim immediately after the usage to ensure the amount is available at any point of time. This comes up with extra premium while purchasing the policy.
Q2) The purpose of bed reservation benefit in a long-term care insurance policy is to secure or reserve a bed or space in a nursing home for a certain period of time so that it can be occupied later.
Q3) Answer is C) Both I and II
Q4) Answer is A) I only.
The benefit eligibility must not be based on a prior hospitalization requirement.
Q5) I won't require a long term care policy considering that I'm a young professional and will not require skilled nursing and taking care of my daily activities considering the less probability of being left out to require such care. The requirements depend on the medical condition of the indvidual, age, availability of people to depend on etc., affordability etc.
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