Which of the Following Statements About Long-Term Care Insurance Is

question 18

Multiple Choice

Which of the following statements about long-term care insurance is (are) true?
I.Long-term care insurance is inexpensive,especially if purchased at older ages.
II.Purchasers have a choice of daily benefits and benefit periods.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.

Adverse Selection

A situation in which one party in a transaction possesses information that the other party does not, leading to an imbalance in the exchange, often seen in insurance markets.

Insurance Market

A market where individuals or entities can transfer or share risk by purchasing insurance policies from insurers, who assume the risk in exchange for premiums.

Diversification

A strategy used in investing or business to spread risks by allocating resources across different assets, products, or markets.