Life License Qualification Program (LLQP) Practice Exam

Which type of insurance provides coverage for expenses related to chronic illness?

1. Critical illness insurance

2. Long-term care insurance

3. Accidental death insurance

4. Term life insurance

The correct answer is: Long-term care insurance

Long-term care insurance is specifically designed to cover expenses incurred by individuals requiring assistance due to chronic illnesses. This type of insurance provides financial support for services that help with daily living activities, such as bathing, dressing, or eating, which may become necessary due to a chronic condition that affects one's ability to perform these tasks independently. The purpose of long-term care insurance is to alleviate the financial burden associated with prolonged health conditions, which may not be fully covered by traditional health insurance or Medicare. It recognizes the need for ongoing care that may last for months or even years, helping policyholders maintain their quality of life as they navigate the challenges of chronic illnesses. Other types of insurance mentioned in the options either cover different types of risks or are targeted toward different needs. Critical illness insurance, for example, focuses on specific diseases that could significantly impact one's health but does not provide ongoing daily assistance. Accidental death insurance is limited to benefits resulting from unintentional causes, and term life insurance primarily provides a death benefit to beneficiaries but does not cover living expenses related to chronic health conditions. Thus, long-term care insurance is the most suitable option for coverage related to expenses for chronic illnesses.