This blog goes into detail on the Activities of Daily Living and the requirements necessary to qualify for Long-Term Care benefits.
Most of us have heard of Long-Term Care and have a general understanding of what it entails. The probability of one day needing Long-Term Care is very real, as around 70% of Americans are expected to need care at some point in their lives. In comes Long-Term Care insurance, which addresses extended medical needs should an individual qualify for benefits. Well, how does one qualify for benefits?
The first main trigger to qualify for benefits are the Activities of Daily Living. Activities of Daily Living are common activities that we perform in our everyday lives that are necessary to go about our day-to-day. The number of activities of daily living differs depending on whether the insurance policy is a Tax Qualified policy or a Non-Tax Qualified policy. In the case of a Tax Qualified policy, an insured typically needs to satisfy the criteria of impairment in two out of six activities of daily living. In the case of a Non-Tax Qualified policy, the criteria is two out of seven activities of daily living, with ambulating being the seventh activity of daily living. Most policies issued today are Tax-Qualified. The activities of daily living include:
Eating
The ability to feed oneself.
Bathing
The ability to wash oneself, as well as entering and exiting the tub or shower.
Dressing
The ability to put on and take off all items of clothing, braces, fasteners, and artificial limbs.
Transferring
The ability to move in and out of bed, a chair or wheelchair.
Toileting
The ability to get to and from the toilet, including getting on and off the toilet, as well as performing personal hygiene.
Continence
The ability to maintain control of bowel and bladder function.
Ambulating
The ability to walk or move around inside or outside the home regardless of the use of a cane, crutches, or braces.
In order to qualify for benefits, a licensed health practitioner must certify the need for assistance for 90 days or more in at least two activities of daily living.
Cognitive Impairment
The second trigger of Long-Term Care benefits is impairment in cognitive ability. This includes the loss or deterioration of mental capacity, and includes many types of dementia, the most common being Alzheimer, Parkinson, and Huntington’s disease. However, there are currently over 70 types of dementia’s that would qualify an insured for Long-Term Care benefits.
Feel free to check out our other articles on Long-Term Care insurance to learn more about the vehicles available to protect you and your family. As you will see, Long-Term Care insurance does not have to be just a cost. Life insurance and annuity contracts with Long-Term Care features provide both wealth accumulation, potential for supplemental retirement income, and death benefit to beneficiaries.
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