Which of the Following Statements Regarding Long-Term-Care Insurance Is True

question 57

Multiple Choice

Which of the following statements regarding long-term-care insurance is true?

• A) Long-term-care policies do not reimburse the insured for the cost of services incurred on a day-to-day basis.
• B) The maximum duration of benefits is only 1 year.
• C) There is no waiting period to receive the benefits.
• D) Most long-term-care insurance policies are non-renewable in nature.
• E) Many policies offer inflation protection riders for an additional premium.

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Definitions:

Annual Percentage Rate

The yearly interest rate applied to loans or gained from investments, encompassing all associated fees and extra expenses related to the transaction.

Stated Rate

The nominal interest rate of a financial instrument, not including any compounding interest or fees.

Effective Annual Rates

The interest rate on an investment or loan that is adjusted for compounding over a specified period.

Annual Percentage Rates

The yearly percentage charged for taking out a loan or gained from an investment, including all fees or extra expenses.