Juniper, 69, suffered a stroke a few weeks ago which left her partially paralyzed and has severely reduced her mobility. Since the stroke, she is unable to leave her home. She benefits from regular visits from nurses, massage therapists and housekeepers. Juniper wants to claim the services on her long- term care (LTC) insurance policy and would like to know how the claim will be processed and paid. Which of the following answers is CORRECT? Select one correct answer from the list 1. 2. 3. 4. The insurer will pay the nurse and the massage therapist directly and Juniper will have to pay the housekeeper out of pocket. Juniper will have to pay for all of the services first and then submit the receipts for all qualifying expenses to her insurer for reimbursement under the home care clause of her LTC policy. The insurer will pay for all of the services directly. Juniper will have to pay for all the services, but she could only claim for reimbursement of the costs of the nursing care, under the home care clause of her LTC policy. O C Omar owns an individual disability insurance policy that he purchased 8 years ago, with the added 50% return of premium rider. The annual premiums are $3,000. Omar has not made a disability claim since purchasing the policy, but he will receive the return of premium benefit next month. How will the return of premium be taxed? Select one correct answer from the list 1. The return of premium is tax-free. 2. The return of premium is taxed as capital gains. 3. The return of premium is taxed as interest income. 4 The return of premium is tax deductible. ΟΟΟΟ
Juniper, 69, suffered a stroke a few weeks ago which left her partially paralyzed and has severely reduced her mobility. Since the stroke, she is unable to leave her home. She benefits from regular visits from nurses, massage therapists and housekeepers. Juniper wants to claim the services on her long- term care (LTC) insurance policy and would like to know how the claim will be processed and paid. Which of the following answers is CORRECT? Select one correct answer from the list 1. 2. 3. 4. The insurer will pay the nurse and the massage therapist directly and Juniper will have to pay the housekeeper out of pocket. Juniper will have to pay for all of the services first and then submit the receipts for all qualifying expenses to her insurer for reimbursement under the home care clause of her LTC policy. The insurer will pay for all of the services directly. Juniper will have to pay for all the services, but she could only claim for reimbursement of the costs of the nursing care, under the home care clause of her LTC policy. O C Omar owns an individual disability insurance policy that he purchased 8 years ago, with the added 50% return of premium rider. The annual premiums are $3,000. Omar has not made a disability claim since purchasing the policy, but he will receive the return of premium benefit next month. How will the return of premium be taxed? Select one correct answer from the list 1. The return of premium is tax-free. 2. The return of premium is taxed as capital gains. 3. The return of premium is taxed as interest income. 4 The return of premium is tax deductible. ΟΟΟΟ
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
99
Transcribed Image Text:Juniper, 69, suffered a stroke a few weeks ago which left her partially paralyzed and has severely
reduced her mobility. Since the stroke, she is unable to leave her home. She benefits from regular visits
from nurses, massage therapists and housekeepers. Juniper wants to claim the services on her long-
term care (LTC) insurance policy and would like to know how the claim will be processed and paid.
Which of the following answers is CORRECT?
Select one correct answer from the list
1.
2.
3.
4.
The insurer will pay the nurse and the massage therapist directly and Juniper will have to pay the housekeeper
out of pocket.
Juniper will have to pay for all of the services first and then submit the receipts for all qualifying expenses to her
insurer for reimbursement under the home care clause of her LTC policy.
The insurer will pay for all of the services directly.
Juniper will have to pay for all the services, but she could only claim for reimbursement of the costs of the
nursing care, under the home care clause of her LTC policy.
O
C
Transcribed Image Text:Omar owns an individual disability insurance policy that he purchased 8 years ago, with the added 50%
return of premium rider. The annual premiums are $3,000. Omar has not made a disability claim since
purchasing the policy, but he will receive the return of premium benefit next month.
How will the return of premium be taxed?
Select one correct answer from the list
1. The return of premium is tax-free.
2. The return of premium is taxed as capital gains.
3. The return of premium is taxed as interest income.
4
The return of premium is tax deductible.
ΟΟΟΟ
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education