Activities of Daily Lining (ADLs)- Everyday functions and activities individuals usually do without help. ADL functions include bathing, continence, dressing, eating, toileting, and transferring. Many policies use the inability to do a certain number of ADLS (such as 2 of 6) to decide when to pay benefits.

Adult Day Care- Care during the day fro adults, usually at senior or community centers.

Alzheimer’s Disease- A progressive, degenerative form of dementia that causes severe intellectual deterioration.

Assisted Living Facility- A residential arrangement that provides individualized personal care and health services for people who require assistance with activities of daily living.

Benefit Triggers- Term used by insurance companies to describe when to pay benefits.

Care Management Services- A service in which a professional, typically a nurse or social worker, may arrange, monitor, or coordinate long-term care services.

Cash Surrender Value-The amount of money you may be entitled to receive from the insurance company when you terminate a life insurance or annuity policy. The amount of cash value will be determined as stated in the policy.

Chronic Illness- An illness with one or more of the following characteristics: permanency, residual disability, requires rehabilitation training, or requires a long period of supervision, observation, or care.

Cognitive Impairment- A deficiency in a person’s short- or long-term memory; orientation as to person, place and time; deductive or abstract reasoning; or judgment as it relates to safety awareness.

Community-Based Services- Sevices designed to help older people stay independent and in their own homes.

Custodial Care (personal care)- Care to help individuals meet personal needs such as bathing, dressing, and eating. Care may be provided by someone without professional training.

Daily Benefit-The amount of insurance benefit in dollars a person chooses to buy for long-term care expenses.

Dementia- Deterioration of intellectual faculties due to a disorder of the brain.

Elimination Period- A type of deductible; the length of time the individual must pay for covered services before the insurance company will begin to make payments. The longer the elimination period in a policy, the lower the premium.

Guaranteed Renewable- When a policy cannot be cancelled and must be renewed when it expires unless benefits have been exhausted. The company cannot change the coverage or refuse to renew the coverage for other than nonpayment of premiums (including health conditions and/or marital or employment status.)

Health Insurance Portability and Accountability Act (HIPAA)- Federal health insurance legislation passed in 1996 that allows, under specified conditions, long-term care insurance policies to be qualified for certain tax benefits.

Home Health Care- Services for occupational, physical, respiratory, speech therapy or nursing care. Also included are medical, social worker, home health aide, and homemaker services.

Homemaker Services- Household services done by someone other than yourself because you’re unable to do them.

Inflation Protection- A policy option that provides for increases in benefit levels to help pay for expected increases in the costs of long-term services.

Lapse- Termination of a policy when a renewal premium is not paid. Medicaid- A joint federal/state program that pays for health care services for those with low incomes or very high medical bills relative to income and assets.

Medicare- The federal program providing hospital and medical insurance to people aged 65 or older and to certain ill or disabled persons. Benefits for nursing home and home health services are limited.

Medicare Supplement Insurance- A private insurance policy that covers many of the gaps in Medicare coverage.

National Association of Insurance Commissioners (NAIC)- Membership organization of insurance commissioners. One of its goals is to promote uniformity of state regulation and legislation related to insurance.

Noncancellable Policies- Insurance contract that cannot be cancelled and the rates cannot be cancel by the insurance company.

Nonforfeiture Benefits- A policy feature that returns at least part of the premiums to you if you cancel your policy or let it lapse.

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.

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

Respite Care- Offers a few hours to several days of help to relieve family caregivers.

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

Spend Down- A requirement that an individual use up most of his or her income and assets to meet Medicaid eligibility requirements.

State Health Insurance Assistance Program- Federally funded program to train volunteers to provide counseling on the insurance needs of senior citizens.

Substantial Assistance- Means hands-on or stand-by help require to do ADLs.

Substantial Supervision- The presence of a person directing and watching over another who has a federal law and offers certain federal tax advantages.

Tax-Qualified Long-Term Care Insurance Policy- A policy that conforms to certain standards in federal law and offers certain federal tax advantages.

Term Life Insurance- Covers a person for a period of one or more years. It pays a death benefit only if you die during that term, it generally does not build cash value.

Third Party Notice- A benefit that lets you name someone who the insurance company would notify if your coverage is about to end due to lack or premium payment. This can be a relative, friend, or professional such as a lawyer or accountant, for example.

Underwriting- The process of examining, accepting, or rejection insurance risks, and classifying those selected, in order to charge to proper premium for each.

Universal Life Insurance- A kind of flexible policy that lets you vary your premium payments and adjust the face amount of your coverage.

Waiver of Premium- A provision in an insurance policy that relieves the insured of paying the premiums while receiving benefits.

Whole Life Insurance- Policies that build a cash value and cover a person for as long as he or she lives if premiums continue to be paid.