Long-term care insurance can feel like a maze of industry jargon—and sometimes you just need a simple definition to help you make sense of it all. Here are some of the most common terms you’ll find related to LTC services and insurance. 

These definitions are intended to be general explanations and may vary according to your insurance carrier, service provider, or unique situation. 

ADLs 

Activities of daily living (ADLs) include bathing, dressing, eating, toileting, and transferring. 

Adult Day Care 

A facility that provides structured care during the day but not overnight. 

Assisted Living  

A residential facility that provides assistance with ADLs and other basic care. 

Benefit 

The funding provided by an insurance carrier to the insured party for services covered by their policy. 

Claim 

The request made to an insurance carrier to pay a benefit for services covered by a policy. 

Cognitive Impairment 

Difficulty concentrating, remembering, learning, or making decisions. 

Elimination Period 

The period of time between the beginning of an illness or injury that meets the guidelines for claim eligibility and the point in time that insurance benefits become payable. This is like a deductible with other types of insurance but it is counted by days rather than dollar amounts.  

Home Health Care 

Therapeutic, nursing, or daily living support services provided in the home. 

Hospice 

End-of-life care focused on comfort and pain management, rather than recovery or cure. 

Lifetime Maximum Benefit 

The maximum monetary benefits an insurance carrier will pay to a policy. 

Long-term Care 

Ongoing care or support for daily activities, disabilities, chronic conditions, or other needs, whether in a facility or at home. 

Maximum Daily Benefit 

The maximum daily monetary benefits an insurance carrier will pay for covered services. 

Memory Care  

A residential facility that specializes in providing assistance for those with Alzheimer’s disease, dementia, or other memory conditions.  

Nursing Care Facility 

A residential facility that provides assistance with ADLs, basic care, and nursing care for those with chronic conditions. 

Premium 

The cost of an insurance policy, typically monthly, quarterly, or annual payments. 

Primary Caregiver 

The person who is primarily responsible for ensuring daily care and ongoing health needs are addressed. 

Rider 

An attachment to an existing insurance policy to provide an additional benefit to standard coverage. 

Skilled Care 

Nursing care from a licensed professional, including doctors, nurses, and physical or occupational therapists. 

Therapeutic Devices 

Ramps, stair lifts, grab bars, barrier-free showers, and other devices used to make the home more accessible. 

Underwriting 

The process of evaluating the risk of a potential insured, how much coverage a policy should include, and the cost of the policy. 

Got a question about a LTC term that’s not on this list? Give us a call at (844) 858-4500 or contact us online today to find out how we can help!