Long-Term Care Policies

question 6

Multiple Choice

Long-term care policies

• A) commonly have an elimination period (waiting period) of between 60 and 90 days before the policies will begin to pay.
• B) are relatively inexpensive and are a good value for those over 60.
• C) are never adjusted for inflation, so care must be taken to estimate future costs.
• D) All of the above are true.

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Definitions:

Fair Market Price

The price at which an asset would trade in a competitive auction setting, reflecting the true value under current market conditions.

Par Preferred Stock

Preferred stock issued at its nominal or face value, often with specified dividends, which has priority over common stock in dividend payments and upon liquidation.

Par Common Stock

The nominal or face value assigned to common stock shares by the issuing company, often used as an accounting standard.

Operations

The day-to-day activities required for a business to function, which can include production, manufacturing, sales, and marketing among others.