LTC EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
At a minimum, what must partnership-qualified long-term
care insurance policies be? - ANSWERS-guaranteed
renewable
That's correct! Regarding renewability, the minimum
requirement is that partnership policies must be guaranteed
renewable. Alternatively, they may be issued as
noncancelable, which would prevent the insurer from
raising premiums for any reason.
A hybrid annuity combines a fixed deferred annuity product
with which of the following? - ANSWERS-a long-term care
rider
That's correct! A hybrid annuity combines a tax-deferred
fixed annuity with a long-term care rider.
,A disadvantage to using a conventional deferred annuity to
fund late-life long-term care needs is that the contract must
be annuitized and payments must be made over a stated
number of years or for life. - ANSWERS-False
That's correct! a deferred annuity does not have to be
annuitized. Owners can access all or a portion of the
contract's funds through lump-sum or partial withdrawals.
However, withdrawals do not receive the same tax-
advantaged treatment that annuitization is given.
Because taking a withdrawal from the cash value of a life
insurance policy is always a taxable event, this technique
should not be used to fund long-term care needs -
ANSWERS-False
That's correct! As long as the insurance policy meets the
definition of an insurance policy and not a MEC, policy
withdrawals are not taxable unless and until the withdrawn
amount exceeds premiums paid.
Which of the following refers to the sale of an in-force life
insurance policy by a terminally ill insured to a third party
for an amount less than the policy's death benefit? -
ANSWERS-viatical settlement
, That's correct! A viatical involves the sale of an existing
insurance policy by a terminally ill insured to a third-party
viatical settlement company. The amount paid for the policy
is more than the cash surrender value but less than the
policy's death benefit.
A health savings account (HSA) is used in conjunction with
which of the following? - ANSWERS-a high-deductible health
insurance plan.
That's correct! An HSA is used in conjunction with a high-
deductible health insurance plan.
All of the following are examples of formal caregiving
EXCEPT: - ANSWERS-d. daily transportation to a senior
center provided by a neighbor
That's correct! Formal caregiving is paid or volunteer care
provided through a service system. Informal care is
delivered by family or friends.
A long-term care ombudsman represents people in a given
geographical area who live in assisted living residences or
skilled nursing facilities. - ANSWERS-a. True
That's correct! A long-term care ombudsman, as a local
representative for those in assisted living facilities or SNFs,
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
At a minimum, what must partnership-qualified long-term
care insurance policies be? - ANSWERS-guaranteed
renewable
That's correct! Regarding renewability, the minimum
requirement is that partnership policies must be guaranteed
renewable. Alternatively, they may be issued as
noncancelable, which would prevent the insurer from
raising premiums for any reason.
A hybrid annuity combines a fixed deferred annuity product
with which of the following? - ANSWERS-a long-term care
rider
That's correct! A hybrid annuity combines a tax-deferred
fixed annuity with a long-term care rider.
,A disadvantage to using a conventional deferred annuity to
fund late-life long-term care needs is that the contract must
be annuitized and payments must be made over a stated
number of years or for life. - ANSWERS-False
That's correct! a deferred annuity does not have to be
annuitized. Owners can access all or a portion of the
contract's funds through lump-sum or partial withdrawals.
However, withdrawals do not receive the same tax-
advantaged treatment that annuitization is given.
Because taking a withdrawal from the cash value of a life
insurance policy is always a taxable event, this technique
should not be used to fund long-term care needs -
ANSWERS-False
That's correct! As long as the insurance policy meets the
definition of an insurance policy and not a MEC, policy
withdrawals are not taxable unless and until the withdrawn
amount exceeds premiums paid.
Which of the following refers to the sale of an in-force life
insurance policy by a terminally ill insured to a third party
for an amount less than the policy's death benefit? -
ANSWERS-viatical settlement
, That's correct! A viatical involves the sale of an existing
insurance policy by a terminally ill insured to a third-party
viatical settlement company. The amount paid for the policy
is more than the cash surrender value but less than the
policy's death benefit.
A health savings account (HSA) is used in conjunction with
which of the following? - ANSWERS-a high-deductible health
insurance plan.
That's correct! An HSA is used in conjunction with a high-
deductible health insurance plan.
All of the following are examples of formal caregiving
EXCEPT: - ANSWERS-d. daily transportation to a senior
center provided by a neighbor
That's correct! Formal caregiving is paid or volunteer care
provided through a service system. Informal care is
delivered by family or friends.
A long-term care ombudsman represents people in a given
geographical area who live in assisted living residences or
skilled nursing facilities. - ANSWERS-a. True
That's correct! A long-term care ombudsman, as a local
representative for those in assisted living facilities or SNFs,
