Shopper's Guide To Long Term Care Insurance

Personal Care (Custodial care) – Care to help individuals meet personal needs such as bathing, dressing and eating. Someone without professional training may provide care.

Personal Care Home – A general term for a facility that cares for elderly people. It is often not covered under a long-term care policy.

Pre-existing Condition – Illnesses or disability for which you were treated or advised within a time period before applying for a life or health insurance policy.

Reduced Paid-up Benefits – A nonforfeiture option that reduces your daily benefit but retains the full benefit period on your policy until death. For example, you buy a policy for three years of coverage with a $150 daily benefit. Then if you let the policy lapse, the daily benefit will be reduced to $100. The exact amount of the reduction depends upon how much premium you have paid on the policy. The benefit period on your policy continues to be three years. Unlike extended term benefits, which must be used in a certain amount of time after the lapse, you can
use reduced paid-up benefits at any time after you lapse (until death).

Rescind – When the insurance company voids (cancels) a policy.

Respite Care – Care provided by a third party that relieves family caregivers for a few hours to several days and gives them an occasional break from daily care giving responsibilities.

Rest Home – A general term for a facility that cares for elderly people. It is often not covered under a long-term care policy.

Rider – Addition to an insurance policy that changes the provisions of the policy.

Shortened Benefit Period – A nonforfeiture option that reduces the benefit period but retains the full daily maximums applicable until death. The period of time for which benefits are paid will be shorter. For example, you buy a policy for three years of coverage with a $150 daily benefit, but if you let the policy lapse, the benefit period is reduced to one year, with full daily benefits paid. The exact amount of the reduction depends upon how much premium you have paid on the policy. Unlike extended term benefits, which must be used in a certain amount of time after the lapse, you can use shortened benefits at any time after you let the premium lapse (until death).

Skilled Care – Daily nursing and rehabilitative care that can be performed only by, or under the supervision of, skilled medical personnel. This care is usually needed 24 hours a day, must be ordered by a physician, and must follow a plan of care. Individuals usually get skilled care in a nursing home but may also receive it in other places.

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