What term describes a condition in which a person cannot perform at least two activities of daily living or requires substantial supervision due to severe cognitive impairment?

What term describes a condition in which a person cannot perform at least two activities of daily living or requires substantial supervision due to severe cognitive impairment?

• A. Chronically ill
• B. Terminally ill
• C. Viatical settlement purchaser
• D. Liquidity

Answer: (A)

In health and life insurance terms, the condition described is chronic illness. It’s defined by the person’s functional decline: they cannot perform at least two activities of daily living (ADLs)—such as bathing, dressing, eating, transferring, toileting, or continence—or they require substantial supervision because of cognitive impairment. This functional criterion signals a long-term need for care and is the basis for certain accelerated-benefit provisions in policies. This differs from being terminally ill, which is about prognosis—typically a life expectancy of 24 months or less—regardless of how independent the person remains in daily activities. The other terms don’t describe a health status: a viatical settlement purchaser is the buyer of a life policy from someone terminally or chronically ill, and liquidity refers to how easily an asset can be converted to cash.

In health and life insurance terms, the condition described is chronic illness. It’s defined by the person’s functional decline: they cannot perform at least two activities of daily living (ADLs)—such as bathing, dressing, eating, transferring, toileting, or continence—or they require substantial supervision because of cognitive impairment. This functional criterion signals a long-term need for care and is the basis for certain accelerated-benefit provisions in policies.

This differs from being terminally ill, which is about prognosis—typically a life expectancy of 24 months or less—regardless of how independent the person remains in daily activities. The other terms don’t describe a health status: a viatical settlement purchaser is the buyer of a life policy from someone terminally or chronically ill, and liquidity refers to how easily an asset can be converted to cash.