LTC Insurance Glossary

Tax-free transfer from existing insurance to a new policy.

Discount applied when accessing death benefit early for care.

Six basic self-care tasks used to measure need for long-term care.

Daytime program providing supervision, activities, and meals.

Strategies to protect assets from being spent on long-term care.

Residential facility providing personal care and housing.

Length of time your policy will pay benefits, typically 2-6 years.

Conditions that must be met to start receiving policy benefits.

Elimination period counted in calendar days from first qualifying day.

Professional help planning and managing your care.

Life insurance add-on allowing early access to death benefit if chronically ill.

Mental function screening typically required for applicants over 65-70.

Mental decline requiring supervision, such as dementia or Alzheimer's.

Benefits increase by a percentage of the prior year's amount.

Nonforfeiture triggered by substantial rate increases.

Premium discount when both spouses apply for coverage.

Non-medical assistance with activities of daily living.

Maximum amount your policy pays per day for covered care.

Amount paid to beneficiaries when the insured dies.

Waiting period before benefits begin, similar to a deductible.

Rider that extends LTC benefits beyond the base death benefit in hybrid policies.

Family member who provides care, potentially compensated by policy.

30-day window to review and cancel a policy for full refund.

Right to buy additional coverage later without medical underwriting.

LTC coverage offered through an employer or association.

Coverage offered without health questions or medical underwriting.

Premium that will never increase over the life of the policy.

Physical help to perform an activity of daily living.

Federal law that established tax-qualified LTC insurance standards.

Care services provided in your own home.

Professional caregiver providing personal care services at home.

End-of-life care focused on comfort rather than cure.

Life insurance or annuity product combined with long-term care benefits.

Policy pays full daily amount regardless of actual expenses.

Rider that increases benefits over time to keep pace with rising costs.

Tax code section defining qualified LTC insurance.

Ratio of potential LTC benefits to premiums paid.

Unlimited benefit period with no maximum duration.

Premiums paid over a set number of years, then policy is paid up.

Another term for hybrid LTC insurance that "links" life insurance with LTC benefits.

Government health program for those with limited income and assets.

Full health evaluation including medical records and exams.

Specialized care for those with Alzheimer's or dementia.

Database insurers use to share applicant medical information.

Maximum amount your policy pays per month for covered care.

Reduced benefits retained if you stop paying premiums.

Facility providing 24-hour skilled nursing care.

Policy requiring no further premium payments.

Basic medical exam conducted at your home by a paramedical professional.

State-approved LTC policy offering Medicaid asset protection.

IRS limit on tax-free LTC benefits per day.

Written document outlining your care needs and services.

Total benefits available, calculated as daily benefit x benefit period.

Amount you pay for your insurance coverage.

Ability to deduct LTC premiums on your tax return.

Review of your prescription drug history during underwriting.

Health classification that determines your premium level.

Premium increase applied to a class of policyholders.

Policy pays actual care expenses up to daily/monthly maximum.

Short-term care providing relief for family caregivers.

Full benefits restored if you recover after using some benefits.

Benefit returning premiums paid if you die without using coverage.

Elimination period counting only days when paid care is received.

Couples can share a combined pool of benefits.

Benefits increase by a fixed amount each year.

Streamlined process with fewer health questions and no medical exam.

One lump-sum payment that funds the entire policy.

Medical care provided by licensed nurses or therapists.

Depleting assets to qualify for Medicaid.

Presence of another person needed for safety during an activity.

Continual oversight needed due to cognitive impairment.

Surviving spouse receives paid-up policy after one spouse dies.

LTC policy meeting IRS requirements for tax-advantaged treatment.

Standalone insurance policy designed specifically to cover long-term care costs.

Process insurers use to evaluate your health and determine eligibility.

Premiums stop while you're receiving benefits.