Long-term care planning can involve unfamiliar terms. This glossary explains common language in straightforward terms so you can have a more informed conversation.
Rate class
A category used in underwriting that can reflect health and other eligibility factors.
Activities of daily living (ADLs)
Basic daily tasks, such as bathing, dressing, eating, transferring, toileting, and continence, that may be used to assess when benefits are available.
Elimination period
A waiting period that may apply before eligible benefits begin.
1035 exchange
A tax-code provision that may allow certain insurance or annuity values to be exchanged into another qualifying policy. Professional tax guidance may be appropriate.
Guaranteed-issue rider
A rider that may offer care-related benefits under stated terms without the same underwriting approach as a stand-alone policy.
Hybrid or asset-based long-term care
A strategy that may combine potential long-term care benefits with another financial purpose, such as life insurance or an annuity-based design.
Lifetime income rider
An optional annuity feature designed to provide income for life under the terms of the contract.
Continue learning
See our long-term care comparison guide or contact Jilek Risk Group for a low-pressure conversation about how these terms may apply to your planning.