Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Once your long term care insurance is in effect, the definition of activities of daily living (ADL) provide the guidance for reviewing the policy provisions that trigger a claim. Some long term care insurance companies allow two out of six ADLs to initiate a legitimate claim and distribute the benefits of the policy.
You can use your long term care insurance when you have qualify via LTC triggers. In qualified plans, you must be unable to perform two or more ADL's without substantial or standby supervision, depending on the wording of the policy, or you must need substantial supervision due to a cognitive impairment. However, unlike unqualified plans, you must have evidence that you will need the care for at least 90 days, and you must use your benefits under the parameters of a written care plan prepared by a licensed professional.
Non-qualified plans do not have the 90 day requirement, do not require substantial supervision for cognitive impairment, and add the ADL of ambulating to the list, thereby making it easier to qualify. Plans may also include the trigger of medical necessity, meaning that benefits can be collected if skilled nursing care is ordered by a physician. However, these plans do not have the tax advantages of qualified plans.
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Non-qualified plans do not have the 90 day requirement, do not require substantial supervision for cognitive impairment, and add the ADL of ambulating to the list, thereby making it easier to qualify. Plans may also include the trigger of medical necessity, meaning that benefits can be collected if skilled nursing care is ordered by a physician. However, these plans do not have the tax advantages of qualified plans.