(140) Benefit triggers
are met when an individual has
Under the federal CLASS Act (Community Living Assistance Services and Support Act), benefit triggers
will parallel private sector triggers, although it has yet to be determined whether the law will require meeting two or three activities.
Nonqualified Trigger * Trigger" Contracts Qualified Contracts Activities Inability to perform Inability to perform Of Daily 2 of 5 ADLs.
require specific, chronic conditions.
Adult day care is paid for by the policy if one of the benefit triggers
is activated and a dependent adult is taken to a center that typically provides intermediate or custodial type care.
Stinson said today's benefit triggers
and underwriting evolved together over the past three decades.
Companies incorrectly compare these two different types of policies, forgetting that the LTCI benefit triggers
and the duration of these claims at older ages are much shorter than DI claims at younger ages.
In addition to an insurer's financial strength, and the benefits, costs and benefit triggers
, etc., of purchasing an LTC insurance policy, a 10-pay option and a nonforfeiture provision are important in choosing a policy.
Non-tax-qualified LTC insurance may be perceived as having more liberal benefit triggers
, making it easier for the client to qualify for benefits.
Exhibit 2: Eligibility Requirements Tax-Qualified LTC Plans Non-tax-Qualified LTC Plans Common Benefit Triggers
Common Benefit Triggers
* Activities of daily living: * Activities of daily living: HIPAA requires that a policy LTC professionals generally acknowledge only five ADLs.
Nonqualified "Triple- Trigger * Trigger" Contracts Activities Of Daily Inability to perform 2 of Living (ADLs).
The House has passed a broad TPIA bill that would include protection for group life insurers and a variety of other provisions, such as a reduction in benefit triggers
and protection against attacks involving weapons of mass destruction.