Long Term Care Fundamentals

5 Credits: Taxes


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Long Term Care Fundamentals

Course Level
CPE Credits

5 Credits: Taxes

Course Description

The risk of needing long term care—a designation given to a broad range of services designed to meet an individual’s mental, emotional or physical health and personal needs and which are often provided over an extended period of time—is present at all ages. However, as individuals become older the risk of requiring long term care increases significantly.

The U.S. population is expected to increase in size by about 27% by the year 2050. In contrast, the part of the U.S. population most at risk for needing long term care—the segment comprised of individuals 85 years old or older—is expected to grow about 280% during this same period. Not only is the part of the population most at risk for needing long term care growing disproportionately, the cost to provide that care is also increasing. Long term care costs are substantial and, over the last several years, have been increasing at a rate that exceeds the inflation rate.

The growing risk of needing long term care fueled by a rapidly aging population coupled with the high and continually increasing cost of such care can present burdensome financial concerns to many clients and their heirs. This course examines the nature of long term care, the forms in which it may be delivered, the risk of needing such care, the costs of long term care, the sources available to pay long term care costs and the features of long term care insurance.

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Learning Objectives

When you have completed this course, you should be able to:

Chapter 1

  • Define long term care;
  • Describe the normal activities of daily living;
  • Identify the settings in which long term care may be provided;
  • Recognize the risk of needing long term care and the factors that may affect the risk; and
  • Describe the social factors affecting the need for long term care.

Chapter 2

  • Identify the national average cost of obtaining long term care in a nursing home;
  • Recognize the average U.S. cost of residing in an assisted living facility;
  • Identify the average costs normally associated with community-based long term care;
  • Describe the U.S. population trends expected to affect the future cost and availability of long term care; and
  • Recognize the various sources of long term care funding in the United States.

Chapter 3

  • Compare the indemnity and reimbursement approaches to providing long term care insurance benefits;
  • Identify the qualified and nonqualified long term care insurance policy benefit triggers;
  • Recognize the basic provisions contained in a long term care insurance policy;
  • Describe the tax treatment to which long term care insurance premiums and benefits are subject; and
  • Identify the alternatives for paying the costs of long term care services.

Chapter 4

  • Identify the factors that affect the suitability of long term care insurance for an individual client;
  • Recognize the client disclosures that should be made in any ethical long term care insurance recommendation; and
  • Describe the special suitability and disclosure requirements applicable to the replacement of a long term care insurance policy.
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Course Specifics

Course ID
Revision Date
April 7, 2023

There are no prerequisites.

Advanced Preparation


Number of Pages

Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02341-23-S
IRS Federal Tax Law Credits: 5
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1909
CTEC Federal Tax Law Credits: 5

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at

Meet The Experts

Paul J. Winn

Paul J. Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.