Question
Assume that Julie purchased a long-term care policy with a 5-year benefit period. The policy provides a daily benefit of $200 using a pool-of-money concept,
Assume that Julie purchased a long-term care policy with a 5-year benefit period. The policy provides a daily benefit of $200 using a pool-of-money concept, with an elimination period of 60 days. The policy is tax-qualified (meets HIPAA requirements). The policy does not have an inflation rider.
a. How can Julie qualify for the benefits under the policy?
b. Assume Julie qualifies for long-term care benefits and enters a qualifying long-term care facility for a period of 7 years. She incurs costs for the entire 7-year period at todays rates. For how long will her policy provide benefits?
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