Which Is the LEAST Reliable and Complicated Way to Pay

question 7

Multiple Choice

Which is the LEAST reliable and complicated way to pay for long-term care?

• A)Buying long-term care insurance
• B)Using a reverse mortgage on the home owned by the person needing care
• C)Accelerating the death benefits from life insurance
• D)Borrowing from the cash value of a whole life insurance policy

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Definitions:

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and the point at which a business, product, or service becomes profitable.

Net Present Value

A calculation used to determine the present value of a series of future cash flows by discounting them at a specific rate.

Initial Cash Outlay

The initial amount of money spent to make an investment or start a project, not counting ongoing expenses.

Fixed Costs

Costs that do not vary with the level of production or business activity.