Chapter 7 - Long Term Care

Question 1

The costs under LTCI can be divided between: (3)

Answer 1

• living cost
• housing cost
• personal care

Question 2

Methods of funding LTCI: (4)

Answer 2

1 single payments
2 regular payments
3 restricted regular payments that stop at either certain age or defined level of disability
4 retrospective payment, from equity released after the sale of the home

Question 3

ADL’s used in LTCI: (6)

Answer 3

1. Washing
2. Dressing
3. Feeding
4. Toileting
5. Mobility
6. Transferring

Question 4

Regular charges can be made from a unit fund in these 2 ways:

Answer 4

1. Cancelling units
2. Reducing unit price

Question 5

Regular charges made from a unit fund: (4)

Answer 5

1. Risk charges
2. Fund management charges
3. Policy admin charges
4. Bid-offer spread

Question 6

3 levels of unit fund protection:

Answer 6

1. Protecting entire investment fund
2. Protecting initial investment
3. Allowing entire fund to be exhausted (non unit fund will only kick in if unit fund is exhausted)