Glossary of Terms

 Accelerated Death Benefit - a feature of a life insurance policy that
allows you to use some of the policies ddaeth benefit prior to death.

Activities of Daily Living (ADLs) - Everyday activities and functions that
individuals do without help. These functions may include eating, dressing,
bathing, toileting and continence. Many policies use ADL's to determine
when to pay benefits.

Adult Day Care - Those that do not require around-the-clock-care are
provide care, including personal care,  at a community-based center for adults.

Alzheimer's Disease - A  progressive, degenerative form of dementia that
causes severe intellectual deterioration.

Assisted Living Facility - A residential living arrangement providing personal care and health services for those needing assistance with activities of daily living. Types and sizes; levels of care and services can vary greatly. For those that do not need the level of care provided by nursing homes they offer a way to keep an independent lifestyle.

Benefit Triggers - term used by insurance companies to describe the
methodology they use to determine eligibility to receive benefits.

Benefits - A sum of money that is paid (or payable) to a recipient from an
insurance company.

Care Management Services - A service where a professional, such as a
social worker or nurse, coordinates and monitors long term care services.
( Also may be known as Care Coordination Services).

Chronic Illness - An illness with one or more of the following characterisitics:
permanence, requires rehabilitation training, residual disability, requires a long period of supervision, observation, or care.

Chronically Ill - Term used in a tax-qualified long term care contract.
It describes a person who needs long term care because of an inability to do everyday activities of daily living.

Cognitive Impairment - A deficiency in a person's long or short-term memory; judgement of safety awareness; deductive or abstract reasoning; orientation as to person, place and time.

Community Based Services - Services that allow older people to be independent in their own homes.

Continuing Care Retirement Communities (CCRC) - A retirement complex that offers a broad range of services and levels of care.

Custodial Care (personal Care) - Care that is provided to help individuals meet personal needs such as eating, bathing, toileting and dressing. Usually provided by someone with professional training.

Daily Benefit - The amount of insurance benefit (in monetary terms) a person chooses to buy for long term care expenses.

Disability Method - A method of paying benefits that only requires you to meet the benefit eligibility criteria. You receive full daily benefits once eligibility has been reached.

Elimination Period - The length of time an individual must pay for covered services before the insurance company will make payments. The longer the elimination period, the lower the payment. Also known as a "Waiting Period".

Expense-Incurred Method - A method of paying benefits where the insurance company must decide if you are eligible for benefits and if your claim is for eligible services. Benefits are paid either to you or your provider
and will pay the lesser of the expense you incurred or the dollar limit of your policy.

Extended term Benefits - Full benefits for a reduced time period, to be used during a certain time period. If not used in a set number of years after a lapse, you lose it. The contract terminates after the period has expired.

Guaranteed Renewable - Where a policy cannot be cancelled by the insurance company and must be renewed when it expires unless benefits have been exhausted or nonpayment of premiums. The insurance company may increase premiums, but only on an entire class of policies, not an individual policy.

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