Long Term Care Certification Practice Test

Which of the following is an expected benefit of long-term care insurance?

1. Higher risk of default on premiums

2. Protection against catastrophic health expenses

3. Guaranteed acceptance regardless of health

4. Tax benefits for all premiums paid

The correct answer is: Protection against catastrophic health expenses

The expected benefit of long-term care insurance primarily hinges on its role in providing financial protection against significant health-related expenses that can arise from chronic illnesses, disabilities, or other long-term care needs. This type of insurance is specifically designed to cover the costs associated with long-term care services, which may include assistance with daily activities, nursing home care, or home health care. By choosing to invest in long-term care insurance, individuals aim to safeguard their finances from the overwhelming costs of such services. These expenses can quickly escalate, making it essential to have a financial plan in place that mitigates the risk of having to pay out-of-pocket for extended periods. On the contrary, other options do not represent typical benefits associated with long-term care insurance. While guaranteed acceptance without regard to health and tax benefits may be applicable to certain insurance products, they do not specifically pertain to the core purpose and the anticipated advantages of long-term care insurance. Additionally, a higher risk of default on premiums is not a recognized benefit, as this does not align with the intended protective function of such policies.