Quiz | July 2010
10 More Things You Should Know About Long-Term Care
Unanticipated long-term-care costs are one of the biggest threats to a secure retirement. Do you know how much it costs for long-term care or who pays for it? Take this quiz to find out and to help you plan for yourself and your loved ones.
By Kimberly Lankford and Mary Beth Franklin
By Kimberly Lankford and Mary Beth Franklin
Quiz
10 More Things You Should Know About Long-Term Care
Question 1 of 10
Most people who need long-term care live:
A. in a nursing home
B. in an assisted-living facility
C. in a hospital
D. at home
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Quiz
10 More Things You Should Know About Long-Term Care
Question 1 of 10
Most people who need long-term care live:
You're right! D. at home is correct.
Sorry, wrong!
is incorrect.
The right answer is D. at home.
The majority of people who need long-term care live in their own home or that of a family member. Long-term care refers to help with daily activities such as bathing, dressing and preparing meals for someone with a disability, chronic illness or dementia. Families and friends are the primary unpaid caregivers. The average cost of a home health aide is $19 an hour.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 2 of 10
Long-term care only affects the elderly.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 2 of 10
Long-term care only affects the elderly.
You're right! B. False is correct.
Sorry, wrong!
is incorrect.
The right answer is B. False.
About 40% of those who require long-term care are younger than 65 years old.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 3 of 10
Nearly 70% of people turning 65 today will need long-term care at some point in their lives.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 3 of 10
Nearly 70% of people turning 65 today will need long-term care at some point in their lives.
You're right! A. True is correct.
Sorry, wrong!
is incorrect.
The right answer is A. True.
And of the nearly 70% of Americans 65 or older who will need long-term care during their lives, 20% of them will need care for five or more years.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 4 of 10
The average cost of a one-year stay in a nursing home is about:
A. $30,000
B. $45,000
C. $60,000
D. $75,000
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Quiz
10 More Things You Should Know About Long-Term Care
Question 4 of 10
The average cost of a one-year stay in a nursing home is about:
You're right! D. $75,000 is correct.
Sorry, wrong!
is incorrect.
The right answer is D. $75,000 .
In 2008, the average cost of a private room in a nursing home is $77,380 a year. The average nursing-home stay is about two and a half years.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 5 of 10
Medicare covers the majority of long-term-care costs.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 5 of 10
Medicare covers the majority of long-term-care costs.
You're right! B. False is correct.
Sorry, wrong!
is incorrect.
The right answer is B. False.
Medicare does not cover extended stays in a nursing home. It only covers skilled nursing or rehabilitative care for a short-term stay of up to 100 days, but it does not cover custodial care for any period of time. Neither does private supplemental medigap insurance.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 6 of 10
There is a new way to get the government's Medicaid program to pay for some of your long-term-care costs without having to spend down most of your assets.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 6 of 10
There is a new way to get the government's Medicaid program to pay for some of your long-term-care costs without having to spend down most of your assets.
You're right! A. True is correct.
Sorry, wrong!
is incorrect.
The right answer is A. True.
Although you normally have to spend most of your money to qualify for Medicaid assistance, about half of the states now have long-term-care partnership programs that allow you to protect assets if you buy a qualified insurance policy. For example, if your state-partnership-approved policy provides $200,000 of coverage and you exhaust your benefits, your state will allow you to protect up to $200,000 of your assets and still qualify for Medicaid to pay your long-term-care bills.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 7 of 10
Long-term-care insurance premiums are lower if you buy a policy when you are:
A. 50 to 59
B. 60 to 69
C. 70 to 79
D. Age doesn't matter
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Quiz
10 More Things You Should Know About Long-Term Care
Question 7 of 10
Long-term-care insurance premiums are lower if you buy a policy when you are:
You're right! A. 50 to 59 is correct.
Sorry, wrong!
is incorrect.
The right answer is A. 50 to 59.
The younger you are, the cheaper it is to buy long-term-care insurance, although it means you probably will be paying premiums for a longer period of time. If you wait to buy insurance, not only will your rates be higher, but you have a greater chance of being denied coverage for health reasons. In many cases, once you begin claiming benefits, you no longer pay insurance premiums.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 8 of 10
Rates for long-term-care insurance can be increased in the future, after you've bought a policy.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 8 of 10
Rates for long-term-care insurance can be increased in the future, after you've bought a policy.
You're right! A. True is correct.
Sorry, wrong!
is incorrect.
The right answer is A. True.
Most long-term-care insurance policies have no guarantee that rates will remain the same forever, but new rules passed in most states make it more difficult for insurers to raise rates on new policies. In 2008, some of the largest insurers -- John Hancock, MetLife and Genworth -- announced that they would raise their rates on existing policyholders for the first time, with increases ranging from 8% to 18%. (John Hancock previously raised rates on policies it acquired from Fortis.)
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Quiz
10 More Things You Should Know About Long-Term Care
Question 9 of 10
Long-term-care insurance premiums are tax-deductible.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 9 of 10
Long-term-care insurance premiums are tax-deductible.
You're right! A. True is correct.
Sorry, wrong!
is incorrect.
The right answer is A. True.
In 2008, long-term-care policyholders can claim a deduction ranging from $310 for those under 40 to $3,850 for those older than 70. However, few people qualify for the write-off since only those medical expenses that exceed 7.5% of your adjusted gross income, including age-allowed long-term-care insurance premiums, can be deducted on your federal tax return. Some states offer an income-tax deduction for long-term-care insurance premiums.
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Quiz
10 More Things You Should Know About Long-Term Care
Question 10 of 10
Scaling back the length of a policy from lifetime coverage to a coverage period of three to five years is one of the best ways to trim your long-term-care insurance premium.
A. True
B. False
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Quiz
10 More Things You Should Know About Long-Term Care
Question 10 of 10
Scaling back the length of a policy from lifetime coverage to a coverage period of three to five years is one of the best ways to trim your long-term-care insurance premium.
You're right! A. True is correct.
Sorry, wrong!
is incorrect.
The right answer is A. True.
Because the average length of stay in a nursing home is less than three years, most policyholders can cut the cost of their premiums by scaling back from lifetime coverage to coverage for three to five years. You may want to consider a lengthier policy if you have a family history of Alzheimer's disease or other chronic conditions. Or, you may be able to buy a policy that lets you share benefits with your spouse if you exhaust your own.
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Quiz
10 More Things You Should Know About Long-Term Care
Results: 0 out of 10 Right
See Also
10 Things You Should Know About Long-Term Care
Visit Our Long-Term Care Center
Retirement Planning: How Prepared Are You?
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Test Your Retirement-Planning IQ
Visit Our Baby-Boomer Retirement Center
How Safe Is Your Money?
Visit Our Retirement Channel
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