Disability & Long-Term CareQuestion 661 of 716
Inflation protection in an LTC policy is important because:
a.LTC premiums are guaranteed for the life of the policy
b.Care costs tend to rise over time, so a fixed daily benefit loses value
c.Medicare will pay any shortfall in benefits
d.Long-term care benefits are always fully taxable, so inflation protection mainly helps offset the tax owed
Explanation
Because long-term care costs climb over the years, a level daily benefit erodes in real value, so inflation protection preserves purchasing power. Medicare does not backstop custodial care.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- A Social Insurance Supplement (SIS) rider on a disability policy pays benefits when the insured is:
- A cost-of-living adjustment (COLA) rider on a disability policy:
- Most disability income policies include a waiver of premium after the insured has been disabled for:
- A disability income policy described as 'occupational' coverage pays benefits for disabilities that occur:
- Workers compensation covers work-related injuries, so a 'nonoccupational' disability policy is designed to cover:
- In an LTC policy, choosing a longer elimination period will generally:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)