Disability & Long-Term CareQuestion 95 of 716
An insured has advanced Alzheimer's disease and can still physically perform all six activities of daily living without assistance. Are they eligible for benefits under a tax-qualified long-term care policy?
a.Yes, because severe cognitive impairment is an independent benefit trigger
b.Yes, but only if a family member also signs on as the designated primary caregiver
c.No, because the insured can still perform all six activities of daily living unaided
d.No, because cognitive impairment alone is never a benefit trigger under a tax-qualified plan
Explanation
Tax-qualified LTC policies use two independent benefit triggers: inability to perform at least 2 of 6 ADLs, or severe cognitive impairment requiring substantial supervision to protect the insured's health and safety. Advanced Alzheimer's disease qualifies under the cognitive-impairment trigger by itself.
Law Reference: HIPAA tax-qualified LTC standardThis 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 →
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Related questions on this topic
- Which of the following is generally covered by long-term care insurance but NOT by standard health insurance or Medicare?
- Under a tax-qualified long-term care policy, an insured normally becomes eligible for benefits when they are unable to perform without substantial assistance how many of the six activities of daily living (ADLs)?
- Which of the following is NOT one of the six activities of daily living (ADLs) used to trigger long-term care benefits?
- A long-term care policy that pays a flat $200 daily amount whenever benefits are triggered, regardless of the actual cost of care, is BEST described as:
- Under the California Long-Term Care Insurance Reform Act, an applicant for an individual LTC policy has how many days to return the policy for a full refund of premium?
- What inflation protection must a California LTC insurer offer to each applicant for a new individual long-term care policy?
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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)