LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A typical LTC policy's benefit is defined by:
- AA single lump sum paid when the insured first enters a licensed long-term care facility
- A daily or monthly amount, a waiting period, and a benefit period or pool of funds
- CThe province's published daily rate for a subsidized bed in a long-term care home
- DA percentage of the insured's pre-retirement salary, in the same way as disability insurance
Correct answer: B) A daily or monthly amount, a waiting period, and a benefit period or pool of funds
LTC design parallels DI: amount, waiting period, benefit period. Some policies express the benefit period as a total pool. Inflation protection is an important option.
Why the other options are wrong
- ALTC is generally paid periodically.
- CProvinces do not set private LTC benefits.
- DLTC is not income-based.
Exam tip
LTC design: daily/monthly amount, waiting period, benefit period/pool, inflation option.
Common mistake
Ignoring the benefit period when quoting LTC.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.