Illinois Health Insurance Practice Exam

What benefit does Long-Term Care (LTC) insurance provide for insured individuals who are unable to perform certain daily activities?

1. Monthly stipend for general expenses

2. Financial assistance for home renovations

3. Daily benefit amount for a specified period

4. Unrestricted cash payout for medical expenses

The correct answer is: Daily benefit amount for a specified period

Long-Term Care (LTC) insurance is specifically designed to cover the costs associated with care that individuals may need when they cannot perform certain activities of daily living, such as bathing, dressing, eating, or toileting. The benefit provided by LTC insurance, therefore, is typically a daily benefit amount, which helps policyholders pay for necessary assistance and care over a specified period. This daily benefit can be used for a variety of caregiving options, including home health care, assisted living facilities, or nursing homes. The structured nature of this benefit is essential, as it directly addresses the need for financial support specifically tailored to the individual's care requirements during times of incapacity. The focus is on supporting the insured with care-related expenses rather than general needs or preferences, which makes this answer particularly relevant and appropriate.