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Long Term Care (LTC) Insurance

The Problem: Aging

People are living longer than they used to. Statistics suggest that approximately 225,000 Canadians turn age 65 each year.

The financial obligations of caring for an elderly person over the long term can wipe out an individual’s life savings, leave their spouse impoverished, and impose hardships on their children/family. The average stay in a long-term care facility is 2.8 years. Home care expenses have increased over 210% annually over the last 20 years. A private nursing home can cost between $3,000 and $6,000 per month. Even with government subsidies, ward coverage can cost over $1,000 per month. The occupancy rate in government certified facilities in Ontario is over 98%. In some areas, the wait for a government nursing home is six to nine months, or longer.

The Solution: Long Term Care Insurance

Sample LLQP Multiple Choice Exam Questions

Below are some LLQP sample questions dealing with Long Term Care Insurance.

1. Margaret is 88 years old and lives in a small apartment with her cat named “Sir Purr”. As each year goes by, she is finding it increasingly difficult to take care of herself and Sir Purr. Her osteoarthritis has affected left her feet and hands. She uses a walker to get around her apartment. With increasing difficulty, she is able to make herself a breakfast each morning consisting of toast and tea. She struggles to take showers and dress herself. Her other two meals each day consist of frozen microwave dinners, or fast food prepared at the supermarket and pre-cooked. Her groceries and errands are done by a 75-year old friend. Margaret was very fit until approximately five years ago, when her arthritis brought her lifestyle to a halt. She now spends most of her day reading novels and fitness magazines, watching television, and talking on the phone to her friends. It is obvious to her that she will need home care or Long Term Care in the next few years, if not sooner. Based only on the information above, does Margaret qualify for a Long Term Care benefit from a Long Term Care Insurance Policy?

  1. Yes, she is covered because arthritis is a covered condition in Long Term Care Policies.
  2. No, she is not entitled to LTC benefits because she is 88 years old, and policies provide benefits to people only up to age 80.
  3. Yes, she is covered because she has trouble preparing food and needs to use a walker to get around her apartment, and these are activities of daily living covered in a LTC contract.
  4. No, she is not entitled to LTC benefits because she is able to perform all activities of daily living, which includes bathing, dressing, eating, toileting, transferring, and continence.

2. Which of the following is/are not LTC injury or illness insurance policy exclusion(s)?

  1. Rest Cures, nervous disorders
  2. AIDS
  3. Cognitive impairment
  4. Eating

  1. I and II
  2. II and III
  3. III and IV
  4. I, III and IV

3. According to your Advocis LLQP program material, what is characteristic of Long Term Care as opposed to Medical Care?

  1. Often administered by non-medical personnel or by family and friends
  2. Provided by doctors or by nurses or other medically trained professionals
  3. Given in a nursing home or at home
  4. Received as a result of an acute illness or injury.

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Answers

1. – d. No, she is not entitled to LTC benefits because she is able to perform all activities of daily living, which include bathing, dressing, eating, toileting, transferring, and continence.
Reference: Module 3, Volume 1, Accident and Sickness Insurance.

2. – c. III and IV. Cognitive Impairment and Eating.
Reference: Module 3, Volume 1, Accident and Sickness Insurance.

3. – a. Often administered by non-medical personnel or by family and friends.
Answers (b, c and d) are examples of medical care
Reference: Module 3, Volume 1, Accident and Sickness Insurance.

We at Advocis and Foran wish our students great success in writing their LLQP exams this summer.

Doug Planche, CFP, CLU, CH.F.C., F.L.M.I.,
Senior Vice President
Foran Financial Institute

Doug Planche is the instructor for the Foran LLQP 4-Day Exam Preparation Seminars. For information on the Foran LLQP seminars, please contact Foran Financial Institute at 1-800-565-0374 or visit www.foranfinancial.com.

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Additional study aids

Preparatory Seminars and Practice Exams

LLQP Prep Seminars – A comprehensive four-day classroom-based seminar intended to prepare you for writing the certification and final licence exams: $545+ taxes
Contact Foran Financial at: 416-947-1922 or 1-800-565-0374.

Please contact Advocis Member Services at 1-877-773-6765 for more details.

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