Socrates once said “the beginning of wisdom is the definition of terms.”  If you’re just starting to learn Long-Term Care Insurance, the terms can be overwhelming.  The signal-to-noise ratio of sites offering advice is terrible and getting worse.  What you’re looking for are not all of the terms, but the most important terms, ranked in order, that you need to know to make an informed decision on Long-Term Care Insurance.

This page will be updated as we think of terms and the industry evolves.

Policy Features

Inflation Protection is the most important part of your policy.  The younger you are, the more important it is.  With an average buyer of 53 years old, we recognize that you may be 30 years away from a claim, and over that 30 years, costs are going to climb.

5% Compound Inflation should be your option unless you’re over 70.  With alternatives like CPI, 3%, 4%, and GPO, it can seem like you’re “beating the system” and saving money by getting more benefit today and scaling back inflation.  Do the math, because the allure is actually a trap.  If you’re just average, scaling today’s benefit back to offset the cost of inflation protection will put you in a better position when you’re most likely to need coverage.

Return of Premium is an option you can pay extra for that entitles your beneficiary to a return of money paid upon your death.  There are several different derivatives, read more at our Return of Premium page.

Return of Premium is an option you can pay extra for that entitles your beneficiary to a return of money paid upon your death.  There are several different derivatives, read more at our Return of Premium page.

Company Ratings Terms

AM Best Rating is the gold standard of financial ratings for a multitude of reasons.  Most gurus suggest considering considering companies with an A rating or better.  We only offer A rated companies or better, so shopping around the A, A+, and A++ rated companies is easy.

Guaranty Associations are state-level organizations that offer additional protections to policyholders.  There are limits that vary by state.  For example, in Illinois, a Health Insurance contract has a limit of $300,000 per claim offered by Guaranty Association.