Long-Term Care Insurance

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.


Additional Knowledge Expected of CFP Professionals
  • Identify that an individual long-term care insurance policy may be obtained from an insurance company.
  • Identify the purpose for which long-term care insurance may be used. 
  • Identify variables that may impact an individual’s ability to qualify for long-term care insurance, such as: 
    • Medical
      • Age
      • Health history
    • Financial
      • Policy structure
    • Lifestyle
  • Identify policy provisions associated with long-term care insurance contracts, such as:
    • Policy structures
    • Terms associated with provision of benefits
    • Premiums
    • Exclusions
    • Riders 
  • Explain models that a long-term care insurance policy may use, such as:
    • Income mode
    • Indemnity model
    • Reimbursement model
  • Identify the activities of daily living that long-term care insurance providers may use to determine when an individual becomes eligible to receive long-term care benefits.
    • Bathing
    • Dressing
    • Toileting
    • Transferring
    • Eating
    • Maintaining continence
  • Identify cognitive impairments that may qualify for benefit coverage under a long-term care insurance policy.
  • Define types of care that a long-term care insurance policy may cover, such as:
    • Home care
    • Facility care
    • Professional care
    • Skilled care
    • Non-skilled care
  • Define terms associated with a long-term care insurance policy, such as:
    • Elimination period
    • Benefit amount
    • Benefit period
    • Premium payment period
    • Optional benefits
    • Exclusions and limitations
  • Identify benefit periods that may be provided under a long-term care insurance policy, such as:
    • Lifetime of insured
    • Specific term
      • Number of years
      • To a specified age
  • Explain the purpose of riders that may be added to long-term care insurance policies, such as:
    • Waiver of premium
    • Inflation protection
    • Durable medical equipment
    • Future purchase option
  • Identify premium pay periods on which a long-term care insurance policy may be based, such as:
    • Lifetime of insured
    • Limited pay
    • Specific term
  • Identify exclusions that may be included in a long-term care insurance policy, such as:
    • Acts of war
    • Criminal offences
    • Intentional abuse of drugs and alcohol
    • Intentionally self-inflicted injuries
    • Attempted suicide
    • Mental conditions that do not have an organic cause
  • Identify factors that may impact the premium of a long-term care insurance policy, such as:
    • Age
    • Current health
    • Health history
    • Benefit amount
    • Length of benefit period
    • Length of elimination period
    • Type and number of additional options
  • Identify types of approvals upon adjudication of an application for long-term care insurance, such as:
    • Approved as applied for
    • Approved with revision to terms of policy
      • Increased premium
      • Reduced benefit amount
      • Exclusions based on medical history or lifestyle
      • Altered plan design
  • Explain factors that may be considered in structuring long-term care insurance coverage, such as:
    • Length of long-term care period
    • Cash flow needs
    • Ability to self-fund during long-term care period
    • Other sources of income during long-term care period
    • Affordability

REFERENCES

1 http://clhia.uberflip.com/i/405133-a-guide-to-long-term-care-insurance/0?