Claims Offset
What Does 'Claims Offset' Mean?
In a Long-Term Care Insurance policy, this is a common contractual language that provides the insurance company to apply inflationary benefit increases to the remaining benefit pool of money within the policy instead of using the original amount.
More Information
A claim offset in Long-Term Care Insurance is a common contractual language that allows your insurance company to increase your remaining benefits to keep up with inflation.
Most policies include differing language to trigger a claim offset. However, the result is mostly the same. Instead of the original amount of remaining benefits, the company will increase your remaining benefits to keep pace with rising care costs.
This can help you get the most value out of your policy as time goes on. It also ensures that your policy is useful for covering your care needs even as times change.