What is a benefit trigger under a long-term care insurance policy?

A benefit trigger in a long-term care insurance policy is a specific event or condition that activates the benefits of the policy. Cognitive impairment is one of the key triggers acknowledged in long-term care insurance.

When a policyholder experiences cognitive impairment, such as Alzheimer's disease or other forms of dementia, it indicates that they may not be capable of performing daily living activities independently and may require assistance or care. This aligns with the purpose of long-term care insurance, which is designed to provide support for individuals facing chronic illnesses or disabilities.

In contrast, while hospitalization requirements may signify health issues, they do not directly trigger long-term care benefits. Similarly, turning 65 years old is a common milestone related to eligibility for Medicare and not specifically a trigger for long-term care benefits. Loss of employment might impact one's financial situation but does not inherently signify a need for long-term care services. Therefore, cognitive impairment stands out as the most relevant and recognized benefit trigger in this context.