Benefit Feature
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| Qualifying for Benefits |
- Typically an insured qualifies for benefits if unable to perform at least 2 of 6 Activities of Daily Living – ADLs. ADLs are bathing, dressing, eating, transferring, continence, and toileting. Qualification can also occur if insured suffers a Severe Cognitive Impairment.
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| Elimination Period |
- That period of time measured from the date insured qualifies for benefits until benefits commence being paid. The number of days in which no payment of benefits will be made for eligible charges.
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| Benefit Period |
- Period of time for which benefits will be paid. Normally this period is two, three, four, six years, or Lifetime.
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| Daily Benefit |
- Per diem amount of coverage selected at time of application. Typical amounts range from $100/ day to $200/ day. This is the benefit payable if insured is hospitalized or living in a nursing home.
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| Percent HHC |
- The percentage of the Daily Benefit that will be paid if care is provided by licensed caregiver in the insured’s home or a relative’s home.
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| Inflation Protection |
- Recommended for most every policy. If included, provides for a 5% increase in the Daily Benefit each year that the coverage is in effect. It increases the amount of the Daily Benefit over the life of the coverage, prior to Qualifying for Benefits. Can be Simple or Compound.
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| Non-Forfeiture Feature |
- Option to receive some level of coverage – usually equal to amount of premium paid since plan inception – under certain circumstances if the policy lapses for non-payment of premium. This feature is illustrated separately and does impact the price of the coverage.
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