Glossary — Learn Insurance Terms and Phrases

Here are some terms that get thrown around whenever people are talking about insurance. There are some very basic ones — and some pretty advanced ones. Look around — hopefully it will give you a better sense of what the insurance companies are talking about.

  1. ALL
  2. A
  3. B
  4. C
  5. D
  6. E
  7. F
  8. G
  9. H
  10. I
  11. J
  12. K
  13. L
  14. M
  15. N
  16. O
  17. P
  18. Q
  19. R
  20. S
  21. T
  22. U
  23. V
  24. W
  25. X
  26. Y
  27. Z

Activities of Daily Living (ADLs)

In Long Term Care insurance, ADLs are what you do independently everyday – eating, bathing, dressing, moving about (mobility), transferring (for instance, from a bed to a chair), using the toilet, and maintaining bladder and bowel continence; ADLs are used to measure the ability to function

Actuarial value

What did God say when he created actuaries?  He scratched his head and said “Go figure!”  They took him literally.  Jokes aside, actuaries calculate the percentage that the insurance company covers versus what you cover.  So an 80/20 plan means they pay 80% of expenses and you pay 20%.  That’s the (very) short answer.

Acute Care

Medical care that is required for a short period of time to cure a certain illness and/or condition

Adult Day Care

Recreational and/or rehabilitative services provided for persons who benefit from daytime supervision; an alternative between care in the home and in an institution

Advance Premium Tax Credit (APTC)

As of 1/1/14, under the Affordable Care Act (ACA), this is the amount of help you will get from the federal government to help you pay for health insurance IF you qualify and only IF you buy health insurance through an online Exchange, aka Marketplace or in California known as Covered California.  The APTC is also known as a subsidy.

Affordable Care Act

The name of the health care reform law President Barack Obama signed on March 23, 2010.

AGI / Adjusted Gross Income

Line 37 on your 1040 tax form.  This is the income that determines whether or not you’re eligible for a federal subsidy to help pay for your individual health insurance.  In short, it’s your income after expenses but before taxes.  Simple.

Assisted Living Facility

A non-medical institution providing room, board, laundry, some forms of personal care, and usually recreational services; also known as domiciliary care facility, sheltered house, board and care home, community-based care facility, residential care facility, etc.

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