Gabe is 58 years old and has been dependent on a cane for a couple of years.Gabe fears that he may need long-term care services some day in the future.His net worth is $400,000 and he receives $50,000 per year in a pension.He considers himself to be in excellent health and has never had a serious health scare like a heart attack,stroke,or cancer.He eats lots of bran and exercises regularly.Which of the following policies would you recommend to Gabe?
A)Gabe needs a disability income policy.
B)Gabe should buy a long-term care policy with a long elimination period, lifetime benefits, and a COLA.
C)Gabe should buy a long-term care policy with a five-year limit and short elimination period without a COLA.
D)Gabe doesn't need disability insurance and probably can't qualify for long-term care insurance.
E)Gabe can qualify for Medicaid if and when he needs long-term care services.

Question

Quizplus · Accepted Answer

Given Gabe's age, dependence on a cane, and concern about needing long-term care services in the future, it is prudent for him to purchase a long-term care policy with a long elimination period, lifetime benefits, and a COLA. This will provide him with financial protection in case he needs assistance with activities of daily living or other long-term care services. The policy with lifetime benefits will ensure that he is covered for as long as he needs care, and the COLA will protect him against inflation. Medicaid may be an option, but Gabe should not rely on it since eligibility requirements can change and benefits may not fully cover all of his needs. A disability income policy may not be necessary since Gabe is currently in good health and may not need income replacement due to a disability. A long-term care policy with a five-year limit and short elimination period without a COLA may not provide sufficient coverage for Gabe's needs.

Gabe Is 58 Years Old and Has Been Dependent on a Cane