Activities of Daily Living ( A.D.L.s ) (Long Term Care): Activities that people do everyday - eating, bathing, dressing, moving about (mobility), transferring (for instance, from a bed to a chair), using the toilet, and maintaining bladder and bowel continence - used to measure the ability to function.
Acute Care (Long Term Care): Care for illness or injury that usually develops rapidly, has pronounced symptoms and is finite in length. Medical care, that is required for a short period of time, to cure a certain illness and/or condition.
Adult Day Care (Long Term Care): Social, recreational and/or rehabilitative services provided for persons who benefit from daytime supervision. Alternative between care in the home, and care in an institution. Refers to health support and rehabilitation services provided in the community to people who are unable to care for themselves independently during the day but are able to live at home at night.
Adult Foster Care (Long Term Care): A live-in arrangement where one adult lives with and is provided care and/or services by an unrelated individual or family. Such arrangements may be certified by the state or managed independently.
Ageism (Long Term Care): Prejudice against people because of their age.
Aging in Place (Long Term Care): When an older individual continues to live at home or within the community, outside of an institutional environment.
Alternate Facility (Long Term Care): A licensed residence, other than a skilled nursing facility where care services are delivered (i.e. hospice, assisted living, Alzheimer's or Christian Science setting).
Alternate Plan of Care Benefit (Long Term Care): Payment for a special arrangement of services specifically designed to allow the person to reside in a setting other than a nursing facility (i.e. services to provide assistance and capital improvements such as ramps, grab bars and/or durable medical equipment).
Alzheimer's Disease (Long Term Care): A form of organic dementia resulting in premature mental deterioration, first described in 1906 by German neurologist, Alois Alzheimer.
Alzheimer's Units (Long Term Care): Special living units within skilled nursing facilities or assisted living facilities specifically providing care and services for those with Alzheimer's disease.
(Annuity) When you annuitize your contract, you trade the value of your contract for the issuing company's guarantee to make payments to you periodically for a certain period, or for your lifetime.
(Annuity) A contract issued by a life insurance company that provides for tax deferral of investment income until withdrawn from the contract. Variable annuities offer a choice of investment options.
Aphasia (Long Term Care): Loss of the ability to use or understand language.
Assessment (Long Term Care): A determination of physical and/or mental status by a health professional based on established medical guidelines or functional guidelines.
Asset Protection (Long Term Care): Willful legal planning to achieve protection from Medicaid "spend-down" requirements, typically provided by irreversible trusts - recently outlawed by Congress except under specific conditions.
Assisted Living Facility (ALF) (Long Term Care): A non-medical institution providing room, board, laundry, some forms of personal care, and usually recreational services. Licensed by state departments of social services, these facilities exist under several names including domiciliary care facility, sheltered house, board and care home, community-based care facility, residential care facility, etc.
(Annuity) Backup withholding is mandatory withholding that may be imposed when rules regarding taxpayer identification numbers (usually a Social Security number) are not met by the individual, or when a notice is issued by the IRS to withhold on payments to that individual. Backup withholding may be claimed as a credit by taxpayers on their federal income tax return.
Bed Reservation Benefit (Long Term Care): Pays the cost of reserving you a place in a care facility should you need to be hospitalized during a covered stay.
The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.
Benefit Period (Long Term Care): The maximum time, usually in days, that a policy will pay the daily benefit. The average stay in a skilled nursing facility is 2.8 years, so many people choose either a 3 year plan (1095 days) or 4 year plan (1465 days) to cover the average stay plus a little time to spare. Others feel safest with an unlimited benefit period.
Capital Improvements (Long Term Care): Permanent physical adaptations to a residence which enables an individual to remain and function in that environment.
Care Coordinator (Long Term Care): A health care professional whose training includes managing and arranging for long term care services. This person can be a doctor, nurse, social worker or other similarly trained, and licensed professional.
Care Management (Long Term Care): Services provided by a professional, typically a nurse or social worker, to assess, coordinate, and monitor the overall medical, personal, and social services needed by an individual requiring long-term care.
Caregiver - Primary (Long Term Care): The key person (usually a relative) overseeing and providing the care for another person.
Caregiver(s) - Secondary (Long Term Care): Relatives or others who assist part-time in giving care.
Cash (Surrender) Value (Life):
The amount that is available in cash for loans and that may be available for withdrawals. Accessing Cash Surrender Value may reduce the death benefit and may increase the risk of lapse.
Catastrophic Illness (Long Term Care): Illness resulting in sudden temporary or permanent change or significant disruption to a person's normal lifestyle.
Chronic Care (Long Term Care): Care for an illness continuing over a protracted period of time or recurring frequently. Chronic conditions often begin inconspicuously and symptoms are less pronounced than acute conditions.
Cognitive Impairment (Long Term Care): Refers to the loss or deterioration of mental capacity in people suffering from conditions such as Alzheimer's disease.
Cognitive Reinstatement (Long Term Care): A provision to continue a policy which has lapsed (providing that back premiums are paid) when the cause of the lapse was due to cognitive impairment.
(Annuity) A collateral assignment is when the ownership rights in a contract or account are transferred from one person to another to serve as collateral for a debt. This transfer is usually made with the provision that the ownership rights revert to the original owner when the debt is repaid. A collateral assignment of a nonqualified annuity is considered a taxable event to the owner of the contract.
Continuing Care Retirement Community (CCRC) (Long Term Care): A residential community providing a variety of living arrangements and services from independent living apartments to ALF and SNF care.
Convertible Term Insurance (Life):
Term insurance that can be exchanged (converted), at the option of the policy-owner and without evidence of insurability, for a permanent insurance policy.
(Annuity) Your initial payment/premium(s) paid to a nonqualified annuity is known as the cost basis in your contract. Since it was previously taxed, your cost basis will not be taxed upon withdrawal. If a previous distribution was not fully taxable, the cost basis would be reduced by the amount that was not taxable. For contracts purchased after August 14, 1982, a "withdrawal" must come from earnings first for tax purposes, and any amounts in excess of your cost basis will be taxed as ordinary income (an additional 10 percent "federal income" tax penalty may apply for those less than 59 1/2 years of age) upon withdrawal.
Custodial Care (Long Term Care): Personal services that can be given safely and reasonably by a non-medical person, designed mainly to assist with ADLs, including bathing, eating, dressing and other routine activities.
Daily Benefit Amount (Long Term Care): A specified, maximum, daily, dollar amount payable on a covered period of care. Your choice should take into account the local costs of care, how much you could pay for care out of your own resources, and how much money or care you could count on from your family.
A return of part of the premium on participating insurance that is based on the insurer's investment, mortality and expense experience. Dividends are not guaranteed.
Elimination Period (Long Term Care): A time deductible. A specified period of time where no benefits are payable for covered care.
Face Amount (Life):
The amount stated on the face of the policy that will be paid in case of death. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.
Home Health Care (Long Term Care): Refers to a wide range of services, from skilled care and physical therapy to personal care delivered at home or in a residential setting.
Homemaker Services (Long Term Care): Assistance given in managing and maintaining household activities that allows you to remain safely in your home when you can not manage those activities on your own. May include meal preparation, laundry, cleaning, chores, etc.
Inflation Protection (Long Term Care): Increases the daily benefit amount on an annual basis. If elected, increases benefits in order to protect against the effects of inflation. Most common is the Compound 5% Inflation Rider which increases the daily benefit amount each year by 5% of the previous years daily benefit amount. The compound effect really begins to take off around the 20th year, so if you are younger when you buy, this seems to be the best choice.
Acceptability to the company of an applicant for insurance.
Insured or Insured Life (Life):
The person on whose life the policy is issued.
Intermediate Nursing Care (Long Term Care): Assistance needed for stable conditions that require daily, but not 24-hour, nursing supervision. Such care is ordered by a physician and supervised by registered nurses. It is less specialized than skilled nursing care, often involves more personal care, and is generally needed for a long period of time.
Level Premium (Life Insurance) (Life):
Life insurance for which the premium remains the same from year to year. The premium is normally more than the actual cost of protection during the earlier years of the policy and less than the actual cost in the later years. The building of a reserve is a natural result of level premiums. The payments in the early years, together with the interest that is to be earned, serves to balance out the underpayment of the later years.
Loan (Policy Loan) (Life):
A loan made by a life insurance company from its general funds to a policy-owner on the security of the cash value of a policy. Generally, loans may reduce the policy's death benefit and cash value.
Long Term Care (LTC) (Long Term Care): Assistance, expected to be provided over a long period of time, to people with chronic health conditions and/or physical disabilities who are unable to care for themselves without the help of another person or assistive technology.
Long Term Care Insurance (LTCI) (Long Term Care): Insurance available through private insurance companies as a means for individuals to protect themselves against the high costs of long-term care.
Medicaid (Long Term Care): A means-tested program supported by federal, state, and local funds and administered by each state to provide health care for eligible low-income individuals
Medicare (Long Term Care): A federal government insurance program to assist those age 65 and over and the disabled with medical and hospital expenses. Medicare covers only skilled care in a skilled nursing facility and limited skilled nursing care at home. It Does Not provide benefits for personal or custodial care. Medicare requires co-payments and deductibles.
Medicare Supplement or "Medigap" (Long Term Care): Policies that are private insurance policies that supplement Medicare benefits by covering CO-payments and deductibles for medical and hospital expenses. These policies do not provide coverage for personal or custodial care.
Nursing Home (Long Term Care): A facility that provides room and board and a planned, continuous medical treatment program, including 24-hour-per-day skilled nursing care, personal care, and custodial care.
Paid-up Insurance (Life):
Insurance that will remain in force with no need to pay additional premiums.
Participating Policy (Life):
A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)
Permanent (Life Insurance) (Life):
Any form of life insurance except term; generally insurance that builds up a cash value, such as whole life.
Personal Care (Long Term Care): Refers to assistance provided by another person to help with walking, bathing, eating, and other routine daily tasks. Care is provided by aides, who are not medical professionals, but are trained to help with these tasks.
The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.
Pre-Existing Conditions (Long Term Care): Medical conditions that existed prior to the effective date of the policy. Some policies may exclude claims stemming from a condition that falls under this definition for a specified period of time.
Payments to the insurance company to buy a policy and to keep it in force.
Renewable Term Insurance (Life):
Term insurance that can be renewed at the end of the term, at the option of the policyowner and without evidence of insurability, for a limited number of successive terms. The rates generally increase at each renewal as the age of the insured increases.
Respite Care (Long Term Care): Is nursing home or home care that temporarily replaces the existing level of support received from an informal, non paid caregiver for the purpose of providing care and supervision to the patient while relieving the caregiver.
Skilled Nursing Care (Long Term Care): Nursing and rehabilitative care provided by or under the direction of skilled medical personnel - available 24-hours a day & ordered by a physician under a treatment plan. Can be either in a facility setting or at-home. Note: Medicare and Medicaid both have their own definitions of "skilled nursing care" which do not necessarily match those found in LTC policies.
Skilled Nursing Facility (SNF) (Long Term Care): A state licensed institutional setting which provides nursing and rehabilitative care provided by or under the direction of skilled medical personnel - available 24-hours a day & ordered by a physician under a treatment plan.
Spend-down (Long Term Care): Depleting almost all assets to meet eligibility requirements for Medicaid.
Term Insurance (Life):
Life insurance that does not build up cash value and where the premium normally increases as the insured gets older.
Third-Party Notification (Long Term Care): Gives you the option of having the "premium overdue" notice sent to a third party as a precaution to insure that the policy does not unintentionally lapse.
Universal Life Insurance (Life):
A flexible premium life insurance policy under which the policyowner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates, which may change from time to time.
Waiver of Premium (Long Term Care): A provision which allows you to stop paying premiums once you are in a period of covered care. Usually applies to only to a facility stay, although some policies do waive premiums for approved home health care as well. Date when premium stoppage begins varies with each company.
Whole Life Insurance (Life):
A basic type of permanent life insurance which can provide lifetime protection at a level premium. Premiums must generally be paid for as long as the policy is in force.
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