Underwriting
Underwriting is a process insurance companies use to calculate the risk of insuring new individuals.
The Complete Glossary on Long-Term Care
Explore clear, easy-to-understand definitions of the terms and concepts that shape long-term care planning. Whether you’re researching coverage options, care types, or planning terms, our glossary helps you make sense of the details so you can plan with confidence.
Term of the Day
Quote
A quote is a cost estimate for an insurance policy provided by the company.
Categories
Topics
Care Types
Premium
This is the amount of money that a policyholder pays to an insurance company in order to keep an insurance policy in force.
Class
It is used for any possible rate increase as any approved increase by a state's Department of Insurance must be by "class". In other words, an insurance company may not increase a premium to just one person or a small group of persons, only a class of people.
Actuary
An actuary uses data to analyze and evaluate risk. They commonly work with insurance companies, businesses, and government entities.
Limited Payment Options
A premium payment option some Long-Term Care policies offer in which the person pays premiums for a set time period. The options are generally 10 years, 15 years, 20 years, or to age 65.
Accelerated Death Benefit
An accelerated death benefit is when a life insurance policyholder gains access to a portion of their death benefits before death, usually to pay for long-term care or other medical needs.
Section 7702(b)
Section 7702(b) is an integral Long-Term Care Insurance regulation that offers consumers protections and defines how and when policies should cover long-term care.
Deductible
A deductible is an amount of money you’re required to pay out-of-pocket before your insurance policy will start covering the cost of care.
Durable Medical Equipment
This is the type of equipment that is primarily being used for a medical purpose as opposed to comfort and convenience. This type of equipment is designed for repeated use. This can include walkers, hospital beds, crutches, wheelchairs, ramps and prosthetics used for in-home care.
Partnership Policies (Partnership Program)
The Long-Term Care Partnership program originated in the 1980s and at that time was implemented in four states: New York, California, Connecticut and Indiana. The partners were the insurance companies and the states and the state Medicaid departments.
Community-Based Services
These are services designed to help elderly or chronically ill individuals which help them stay at home. These include services and programs such as meals on wheels and adult day care, that are designed to help care for people with chronic conditions and their functional capability
Suitability
States require insurance professionals to determine whether Long-Term Care Insurance is suitable for the consumer before recommending a policy.