Glossary

Absolute assignment Irrevocable transfer of complete ownership of a life insurance policy from one party to another. See also assignment.

Accessory apartment Conversion of surplus area in an existing single-family home into a separate living unit with its own kitchen, bathroom, and often its own entrance.

Accelerated death benefit life provision (also called living benefit)-Provision sometimes contained in life insurance policies that dictates under what conditions the policy owner is able to receive a reduced policy benefit while alive. Typical conditions include the onset of serious or terminal illness or permanent confinement to a nursing home.

Accepting assignment Claim filing system in Medicare Part B that helps control seniors’ out-of-pocket costs and expedites payments to physicians and other providers.

Accidental death and dismemberment (AD&D) rider Supplementary benefit rider or endorsement that provides for an amount of money in addition to the basic death benefit of a life insurance policy. This additional amount is payable only if the insured dies or loses any two limbs or the sight of both eyes as the result of an accident.

Active adult (retirement) communities Residential developments that offer living in a planned facility or development with organized leisure and recreation activities, plus no maintenance duties for residents. They are designed for seniors, but younger guests are welcome.

Activity of daily living (ADL) Six basic personal care activities: eating, toileting, dressing, bathing, transferring, and continence. The ability of someone to perform ADLs can help a professional assess their personal self-maintenance. Many long-term care policies use a person’s ability to perform ADLs unaided as a gauge for deciding when to pay benefits.

Acute illness Severe illness with a rapid onset and a generally short duration.

Acute myocardial infarction Also known as a heart attack. Occurs when an area of heart muscle dies or is permanently damaged because of an inadequate supply of oxygen to that area.

Adjusted basis The owner’s original basis in an asset, plus improvements or minus depreciation.

Adjusted gross estate Accumulated assets of a decedent, minus administrative expenses to settle the estate, funeral expenses, debt of the decedent, uninsured theft and casualty losses to estate property, and claims against the estate.

Adjusted gross income (AGI) Total amount of a person’s wages, dividends, and other financial receipts, minus adjustments to income, such as alimony paid and deductible contributions to individual retirement accounts (IRAs).

Adjusted taxable gifts A decedent’s post-1976 taxable gifts, reduced by taxable gifts included in the gross estate, which are added to a decedent’s taxable estate to form the estate’s tax base.

Adjustment disorders Distress leading to impairment in daily functioning, and which occurs within three months of a specific event and does not last longer than six months after the end of the stressful event.

Adjustments to income When calculating income tax, the deductions used to arrive at adjusted gross income. Adjustments to income include: deductible contributions to IRAs, one-half of the self-employment tax, self-employed health insurance deduction, qualified job-related moving expenses, alimony paid, and penalty on early withdrawal of savings.

Administrator (administratrix) Person who settles the estate when an individual dies intestate.

Adult day care Care provided at a community-based center for adults who need assistance or supervision during the day (including help with personal care) but who do not need round-the-clock care.

Advanced directive Statement made by an individual, usually in a written document, concerning the medical treatments to be provided and decision=maker to be appointed if the patient becomes terminally ill or incapacitated.

After-tax return Amount of income realized on investments after applicable income taxes are subtracted.

Ageism Prejudices and stereotypes that are applied to persons based solely on their age.

Age-period-cohort Method of understanding the psychology of growing older by analyzing three areas: aging effects, related to the process of growing older; period effects, related to events of a specific time in history; and cohort effects, related to common characteristics of a specific generation of people born in the same interval of time.

Aging Regular changes that occur in mature organisms as they live for chronologically longer periods.

Aging in place Concept describing a senior remaining in the same residence and coping successfully with associated vulnerabilities by themselves or with assistance.

Agnosia Inability to recognize familiar objects in the absences of sensory deficits.

Agoraphobia Extreme fear of being in places from which it is not easy to escape.

Alternative container A container, used in lieu of a casket, usually used for immediate burial. Alternative containers are constructed of simple pine boards, particleboard, or hard cardboard.

Alternative minimum tax (AMT) Payment that may be required of taxpayers who would otherwise have significantly reduced taxation through high use of tax preference items or adjustments. If the calculated alternative minimum tax is higher than the regular tax as calculated, the taxpayer is required to make the AMT payment.

Alzheimer’s disease Progressive, degenerative form of dementia that causes severe deterioration of mental functioning, including loss of memory, impairment of judgment, abstract thinking, and deterioration of personality.

Aneurysm Localized enlargement of an artery. This can cause enough pressure to rupture and spill blood into the space surrounding brain cells.

Angina Localized pain related to the demands made on the heart, most commonly for the performance of physical exercise, but also to cope with emotional reactions.

Antipsychotic medications Used to treat symptoms associated with dementia.

Angioplasty Procedure used to widen vessels narrowed by stenoses or occlusions. Various types of these procedures and their names are associated with the type of vessel entry and equipment used.

Annual exclusion Maximum amount a person may give each year as a gift without having to pay a gift tax.

Annuitant Receipt of annuity distributions.

Annuity Income from capital investment paid in a series of regular payments.

Aphasia Partial or total loss of the ability to speak or understand speech due to a disorder in the cerebellum of the brain.

Apoptosis Cellular suicide to prevent a genetic error (as found in cancerous cells) from being passed on.

Applicable exclusion Amount of an individual’s assets that can be held not subject to federal estate tax.

Apraxia Difficulty with physical movement despite otherwise normal physical functioning. Change in gait (walking) is one common example.

Arthritis Inflammation of the joints.

Artificial nutrition and hydration Provision of food or water to a patient using a tube inserted into the esophagus or surgically implanted into the stomach.

Asset allocation strategy Method of diversification aimed at reducing variability of return from a portfolio of investments. The point of asset allocation is to invest in different types of assets that have low correlation with others in the portfolio.

Asset What a person owns. Assets include cash and cash equivalents, invested assets, and use assets.

Assignment Act of a person transferring ownership of a life insurance policy to another person.

Assisted living facility Residential housing meant for seniors with physical or cognitive impairments that make it difficult for them to perform an average of two ADLs (see definition above) without assistance.

Assisted suicide Deliberate hastening of death by a terminally ill patient with assistance from a doctor, family member, or other individual.

Assistive technology Device used to improve the capabilities of an individual with disabilities. Assistive technology is an umbrella term that also includes durable medical equipment.

Atherosclerosis Blockage within blood vessels that contributes to the development of heart disease and other circulatory disorders.

At-need Funeral or burial at the time of death.

Authentic plans Intentions for the future that are genuine, real, and a truthful reflection of a person’s beliefs.

Balance sheet (also called statement of financial position) Financial statement listing a client’s assets, liabilities, and net worth as of a specific date.

Basal Rate of the body’s metabolic processes at baseline or at rest.

Basal metabolic rate (BMR) Rate of the body’s chemistry at baseline or at rest.

Basis Amount a person has invested in an asset, or the tax cost of an asset.

Bathing Washing oneself in either a tub or shower. This activity includes the task of getting into or out of the tub or shower.

Belonging Sense of community that fulfills our need to be part of a group that shares and validates our values and beliefs, and in which we feel safe, secure, and free to be ourselves.

Beneficiary In the context of insurance, the person or entity who has a remainder interest in policy proceeds. In the context of trusts, the person who benefits from the trust and who has beneficial ownership of trust assets.

Benefit period Defined length of time used to measure a patient’s use of services for inpatient hospital and skilled nursing facility care, and separately for hospice care. In the hospital and skilled nursing facility context, a benefit period begins on the day a beneficiary enters an inpatient hospital and ends when he or she has not received inpatient hospital or skilled nursing facility care for 60 days in a row.

Benefit trigger Term used by insurance companies to describe the criteria and methods they use to determine when a person is eligible to receive benefits.

Benzodiazepines Any of a group of chemical compounds with a common molecular structure and similar pharmacological effects. Used as anti-anxiety agents, muscle relaxants, sedatives, hypnotics, and sometimes as anticonvulsants.

Bereavement Experience of the death of a loved one.

Bequest Act of transferring personal property by a will.

Biointerventions Actions designed to retard or reverse the aging process.

Biological nuclear family Kinship unit that consists of a husband and wife living together with children by birth or adoption only (I.e., does not include blended families).

Biomarkers Key physiological factors associated with aging.

Biomarkers of functional age Physiological factors used to estimate the rate at which the very fundamental processes of aging occur within individuals.

Bipolar disorder Mental process in which mood cycles back and forth between periods of mania, normal functioning, and depression.

Blended families Husband and wife living together with children brought to the family by one or both partners from previous marriages or relationships; may also include children from their union.

Board and care Residential setting – often a large, conventional, single-family house – consisting of multiple bedrooms, each occupied by one person, or alternatively by two to four residents. Residents may have to share the toilet and bathroom facilities, and most activities will occur in the building’s common living areas.

Body donation Means of final disposition in which the deceased’s remains are given for research to a medical school or dental school.

Bond Debt that represents a legal obligation of the issuer to pay principal and interest when due.

Boundaries Psychological fences that define emotional limits and delineate what is acceptable and unacceptable behavior. In health care giving relationships, boundaries act as operational parameters that outline how the caregiver/care recipient relationship works.

Budget Financial statement listing expected income and expenses for a future period of time.

Burnout State of mental or physical exhaustion caused by excessive and prolonged stress.

Business ethics Principles that should govern the conduct of business, whether at the individual or collective level’ the way that people should act in business.

Buzz Highly intense and interactive form of word of mouth, essentially a linear process with information passing from one individual to another, then to another, etc.

Cancer Various malignant neoplasms characterized by the proliferation of anaplastic cells that ten to invade surrounding tissue and metastasize to new body sites.

Capital gain (capital loss) Increase (or decrease) in value a seller realizes on the sale or exchange of a capital asset. A net short-term capital gain is treated as ordinary income. A net long-term capital gain is generally subject to a maximum 20 percent tax rate.

Cardiopulmonary resuscitation (CPR) Emergency treatment that compresses the heart and forces air into the patient’s lungs. It is applied when a patient’s heart or breathing stops.

Carefrontation Time of introspection to help potential caregivers determine if they can legitimately embrace the role. Introspection is an honest appraisal of capabilities when caregivers take a hard and truthful look at who they are and what they can handle physically, emotionally, and mentally.

Caregiver Person who provides unpaid care to someone who requires help with activities of daily living (ADLs) or instrumental activities of daily living (IADLs).

Care managers (also called geriatric care managers) Persons who help navigate seniors through the sometimes confusing long-term supportive services system.

Carriers (Medicare Part B) Private companies who contract with the Centers for Medicare and Medicaid Services to make coverage determinations and process Medicare claims.

Cash-flow statement Personal financial analysis that lists inflows and expenditures made by a person or family over a particular period.

Cash model Method of funds distribution in which the recipient decides how to spend money for the care, including purchasing services from vendors, hiring a friend to help with activities of daily living, purchasing assistive technology, or modifying their home to make it more accessible.

Cash surrender value option Insurance policy provision allowing a policyholder to surrender the contract in exchange for an amount of money equal to an insurance policy’s accumulated value, less any loans on the policy. Upon payout of the cash surrender value, the insurer no longer provides coverage.

Casket Metal, wood, or plastic container in which a deceased’s remains are interred.

Categorically needy Definition of financial deficiency required of individuals who receive federally assisted income maintenance payments such as Aid to Families with Dependent Children (AFDC) or Supplemental Security Income (SSI).

Cell Basic living unit of the body.

Cemeterian Owner or staff of a cemetery.

Certificate of deposit (CD) Fixed-income investment vehicle available through financial institutions such as banks, savings and loan associations, and credit unions. Interest rates and maturities of CDs are fixed at the time of purchase. Maturities vary from a few months to a few years, and early redemption may result in the payment of penalties.

Charitable gift annuity Agreement by a charity to provide a lifetime annual payout in exchange for assets received from a donor.

Charitable lead trust (CLT) Institution that accepts assets from a donor and in return pays income to one or more charities while the remainder is distributed to family members at the termination of the trust. Charitable lead trusts generally do not reduce a donor’s taxable estate for federal estate tax purposes.

Charitable remainder trust (CRT) Irrevocable agreement between an institution and donor designed to pay income to living beneficiaries. A donor transfers assets into a CRT, reserves an annuity income interest in the property (generally for life), and contributes the remainder interest in the property to the charity or charities at the donor’s death.

Chemotherapy Treatment of cancer using specific chemical agents or drugs that are selectively destructive to malignant cells and tissues.

Chronic illness Medical condition with one or more of the following characteristics: permanency, residual disability, requiring rehabilitation training, or requiring a long period of supervision, observation, or care.

Chronically ill Term used in a tax-qualified long-term care contract to describe a person who needs long-term care either because of an inability to do everyday activities of daily living (ADLs) without help or because of a severe cognitive impairment.

Chronological age Calculation of age in terms of number of years a person has lived; colander age.

Churning Excessive trading (overtrading) by an investor of a client’s assets to earn commissions rather than improve the client’s situation.

Code of Ethics Open disclosure of the way an organization operates, providing member or employee’s visible guidelines for behavior.

Cognitive impairment Deficiency in a person’s: short or long-term memory; orientation as to person, place, and time; deductive or abstract reasoning; or judgment as it relates to safety awareness.

Columbarium Building with niches or spaces for urns containing the cremated remains of the deceased.

Commercial annuity Agreement by an insurance company (or similar entity) to pay a sum of money to an individual in exchange for receipt of money or property from the individual.

Common-law state A state that deems property originally purchased in that state may not be held as community property.

Community property Assets acquired by either or both spouses during a marriage, if the couple lives in a community property state. In general, each spouse is considered to own half of the property, regardless of who provided the means to purchase or acquire the property and regardless of how title is held.

Community property state A state that deems spouses can own property as community property. These include Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Community spouse (CS) A spouse who continues to live at home in the community while his or her spouse lives in a nursing home.

Community spouse resources allowance (CSRA) Amount that Medicaid regulations permit a community spouse to retain.

Competence In the context of health care, ability of a patient to make independent decisions about medical treatments.

Compound rate Percentage of interest earned on an investment, expressed either as annual rate or a rate per compounding period.

Compounding Process of interest accumulating on both a principal balance and previously earned interest.

Comprehensive financial plan A financial plan that covers just about all of a person’s financial objectives, including consideration of risk management, investment planning, tax planning, retirement planning, and estate planning.

Compulsions Repeated behaviors (e.g., hand washing, reciting a word to prevent someone from getting hurt, checking locks, cleaning) intended to reduce a person’s anxiety, often about an obsession.

Conductive hearing loss Inability of sound waves to pass satisfactorily to the inner ear. Common causes of this are wax buildup in the ear canal, perforated eardrum, fluid in the middle ear, or damage to the ossicles.

Conduit IRA Unofficial term for an IRA used to park a distribution from one qualified plan until it can be rolled over to another qualified plan. With a conduit IRA, the forward-averaging potential of the distribution can be preserved.

Confusion (disorientation) Loss of sense of position in relation to time, space, or other aspects of the environment. Confusion may be the first sign of an illness, such as a urinary tract infection.

Congruent plans Intentions for the future that are consistent, corresponding, and harmonious with each other.

Conservator (guardian of the assets) Person appointed by the court to manage the financial and legal affairs of an incapacitated individual.

Continence Ability to maintain control of bowel and bladder function or, when unable to maintain control of these functions, to perform associated personal hygiene (including caring for catheter or colostomy bag).
Contingent beneficiary Person who stands next in line to receive an asset if the primary beneficiary predeceases the owner or disclaims the asset.

Continuing care retirement community (CCRC, also known as life care) Communities that provide a type of combine health, housing, and social care insurance for older persons. A person signs a contract and agrees to pay an entrance fee and a monthly service fee in exchange for a living unit, health care, and lifetime nursing care if needed.

Continuity theory Concept that as people get older they usually seek to pursue the same activities they engaged in earlier in life.

Continuum of incapacity Fluctuation of ability to perform tasks. Many seniors vacillate between being capable and incapable to do many tasks, never being fully able, but also never being completely unable.

Conversational reciprocity The act of listening to what a person has to say, then giving playback to indicate that not only was the message understood, but that the listener has been influenced by what they said. Within business, conversation reciprocity is used by professionals who wish to build trust, not just sell products.

Coronary arteries Vessels that supply nutrients and oxygen to the heart muscle.

Coronary artery bypass graft (CABG) Surgical procedure in which one or more blocked coronary arteries are circumvented by a blood vessel graft to restore normal blood flow to the heart. These grafts usually come from the patient’s own leg, arm, or chest arteries and veins.

Cost basis Amount paid (i.e., its cost) to purchase a capital asset.

Cost of living adjustment (COLA) Annual fluctuation in wages used to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index.

Credits (previously called quarters of coverage) Units of work history that determine a worker’s eligibility for future Social Security benefits. Workers can earn a maximum of four credits each year, and most people need 40 credits to qualify for benefits. Younger people need fewer credits to qualify for disability or survivor benefits.

Cremation Means of final disposition in which the body is incinerated.

Crematorium (crematory) Facility where a body is cremated.

Crossover claims Statements of claim and payment information from a Medicare fiscal intermediary or carrier used to inform a Medigap insurer of deductibles or coinsurance charges required of the beneficiary. The Medigap insurer uses the crossover claims to pay the provider for deductibles or coinsurance charges the beneficiary would otherwise owe.

Crypt Space in a mausoleum that encloses a casket with the remains of the deceased.

Custodial care (personal care) Care, often provided by someone without professional training, to help individuals meet personal needs such as bathing, dressing, and eating.

Daily benefit Amount of insurance benefit (in dollars) paid to a beneficiary for long term care expenses.

Decoupling Act of levying a state tax that is not dependent on the rules of the federal system.

Default surrogate Person, in the absence of an advance directive, which has decision-making authority to advise the physician.

Deferred annuity Investment product in which payments do not begin immediately upon funding; rather, they are deferred until a future date.

Delirium Reversible organic mental disorder characterized by disturbances of attention, memory, and orientation, with altered levels of consciousness ranging from mild confusion to stupor. Delusions, illusions, or hallucinations may be present.

Demand bill Statement of cost submitted by medical care providers to Medicare, even if they think that Medicare will not pay for a service. After a Medicare fiscal intermediary or carrier issues a denial, the senior can request reconsideration or review of the adverse decision.

Demand response (also called dial-a-ride) Service that provides transportation from one specific location to another.

Dementia Pervasive cognitive decline that includes: sleep disturbance; loss of interest in pleasurable activities; poor attention or concentration; loss of appetite; agitation or retardation of movement; irritability; memory impairment; difficulty organizing; language deficits; and, in later stages, incontinence.

Demographic transition Change in population structure identified with developing countries and associated improvements in public health and medicine. According to the demographic theory, as countries become developed, they experience a shift in growth rate from rapid population growth to slow growth, from slow growth to zero growth, and finally to a reduction in population.

Diabetes Metabolic disorder in which the body is unable to properly utilize glucose. May be Type 1 IDDM (insulin-dependent diabetes mellitus) or Type 2 NIDDM (non-insulin dependent diabetes mellitus).

Diabetic ketoacidosis Emergency condition in which extremely high blood glucose levels, along with a severe lack of insulin, result in the breakdown of body fat for energy and an accumulation of ketones in the blood and urine.

Diastolic pressure Measurement (the bottom number of a blood pressure reading) of the pressure remaining in the arteries between heartbeats.

Direct cremation Disposition where the deceased is cremated without embalming or funeral service with the body present.

Direct rollover Tax-free transfer of cash or other property between two tax-deferred retirement plans (i.e., qualified plans, IRAs, 403(b) plans, governmental Section 457 plans, etc.) where the transferred cash or property never passes through the hands of the owner.

Disability Reduction in functional capacity that results from physiological, psychological, or social impairments. Short and long-term disability are a result of acute and chronic conditions, respectively.

Disclaim Act of waiving the right to an inheritance, resulting in the inheritance passing to the next in line, in accordance with the terms of the will, trust, or laws of intestacy.

Discrimination Behaviors, specifically those that restrict, impair, exploit, humiliate, or otherwise hurt seniors.

Disease Interruption in the process of health, manifested by abnormalities or disturbances of functioning.

Disinhibition Personal loss or normal behavioral limits or self-restraint, as through the influence or external stimuli such as drugs or alcohol, or as a result of brain damage.

Distribution Outflow from a retirement plan. For mutual funds, a payment by a mutual fund to shareholders, either in cash or shares, for dividends received from securities in the fund or capital gains generated from the sale of securities in the fund.

Diversification The process of strategy of investing in different types of assets to reduce risk.

Domestic elder abuse Mistreatment of an older person by someone who has a special relationship with the elder (spouse, sibling, child, friend, or caregiver) in either the older person’s home or in the home of the caregiver.

Do not resuscitate (DNR) order Physician’s order, inserted into a patient’s medical chart, stating that CPR shall not be used as a lifesaving procedure.

Dressing Putting on and taking off all items of clothing and any necessary braces, fasteners, or artificial limbs.

Durable power of attorney for health care (proxy statement) Legal document prepared by an individual authorizing a family member or friend to make health care decision on their behalf in case of incompetence.

Dual enrollees Individuals covered by both Medicare and Medicaid.

Dysphagia Condition in which some stroke patients have trouble eating and swallowing.

Dysthymia Chronic, less severe form of depression including depressed mood most of the day, most days, for at least two years that causes significant distress or impairment in daily functioning.

Earned income credit (EIC) Refundable tax credit created to assist low-income working families.

Eating Feeding of oneself by getting food into the body from a receptacle (such as a plate, cup, or table) or through feeding tube or intravenous delivery.

Elder cottage housing opportunity (ECHO) Small, freestanding, removable housing units, typically in the side or backyard of a single-family home to provide housing for elderly parents so that they can be near their adult children for mutual aid and support but still live independently.

Electroconvulsive therapy Treatment that involves inducing a brain seizure by passing an electrical current through the brain for a few seconds via small electrodes attached to the head.

Elimination period (waiting period) Length of time an individual must pay for voered services before the insurance company will being to make payments. It serves as a kind of deductible: The longer the elimination period in a policy, the lower the premium.

Enbalming Process in which the body fluid of a decedent are drained and chemicals inserted to retard decay.

Emergency fund Reserve of cash or cash equivalents (i.e., assets that could be quickly converted to cash without loss of principal) available to handle emergencies. Financial planners typically recommend an amount equal to three to six months of fixed and variable expenses.

Empathy Process of identifying with and understanding another’s circumstances, feelings, and motives.

Employee Retirement Income Security Act of 1974 (ERISA) Federal law governing the operation of most private tax-deferred retirement plans. Qualified employer-sponsored retirement plans must comply with ERISA.

Endurance activity Activity that lasts at least 30 minutes, conducted to increase breathing and build stamina, which supports independence and enjoyment of activities.

Equity Ownership, in particular pertaining to having the right to share in future profits or appreciation in value (e.g., of property of stock).

Error theory Hypothesis that aging is caused by environmental attacks to our body systems, resulting in damage over time.

Escort service Transportation business or agency that picks up clients at home, guides them through appointments, and then returns them home.

Estate All property interests a person owns, including property over which the person exercises decisive control.

Estate plan Documents that detail the instructions to be followed during disability or after death. People without an estate plan in effect choose to let the laws of the state provide the instructions to be followed during disability or after death.

Estate planning Process of directing one’s affairs to provide income, investments, and appropriation of assets for oneself or others during life and upon disability or death.

Estate tax Tariff levied upon a decedent’s estate by the federal government and some states, based on the value of the decedent’s assets at death.

Estrogen Sex hormone found primarily in women, but also in small amounts in men. This hormone has many roles, one of which is to slow thinning of bone as one ages, but it also may help prevent frailty and disability.

Ethical wills Systematic writing down or communicating one’s intangible legacy of values to children and family members.

Euthanasia Act or practice of terminating (which can take a variety of forms) the life of a person.

Excess charge Fifteen percent markup on Medicare’s approved amount allowed to physicians who do not accept assignment.

Exclusion In the context of income tax, amount not considered when calculating gross income. Includes amounts that otherwise would be included in a taxpayer’s gross income, except that a particular code section specifically provides for their no inclusion. Common exclusions include those for municipal bond income, gifts and inheritances, death proceeds from a life insurance policy, and the gain (limited by IRS code) from selling a principal residence.

Executive functioning Group of mental processes that includes problem solving, abstract thinking (recognizing, for example, that n apple and an orange are both fruit), organization, and judgment.

Executor (executrix or personal representative [PR]) Representative responsible for distributing property when an individual dies with a valid will.

Extraordinary medical measures Medical treatment that would not provide a distinct benefit, would not serve a patient’s best interest, or would be considered unreasonable in improving or saving a patient’s life.

Family household Group of two or more people related by birth, marriage, or adoption and residing together, along with other unrelated people who may be living in the housing unit.

Family limited partnership (FLP) Agreement among family members about how to manage and own family wealth. In this agreement, it is common for the business owner to maintain control of the business while transferring title.

Family partnership Business agreement limited to only family members. Used by senior family members to transfer interests in the business to junior family members at a reduced gift tax cost by means of valuation discounts.

Fiber Portions of plants that mammals cannot digest and, therefore, cannot be absorbed through human intestines.

Filing status Categorization of taxpayers used to determine deduction amounts and tax assessments. Each filer declares a filing status in their tax return: married filing jointly (or separately), single, head of household, estates, and trusts.

Financial planning Development and implementation of total, coordinated plans designed to achieve an individual’s financial objectives.

Fiscal intermediaries (Medicare Part A) Private companies contracted by the government to make coverage determinations and process Medicare claims.

Fixed-amount settlement option Provides the beneficiary a stated amount of income each month until life insurance proceeds are exhausted. Each payment consists party of interest and partly of principal. The insurer guarantees a minimum rate, but usually pays the rate actually earned on investments.

Fixed-income security Investment that promises a stated amount of income, either in the form of periodic payments (such as interest) or a stated ending payout (such as with zero coupon bonds). Because payouts are fixed, these securities tend to be subject to interest rate risk and purchasing power risk.

Fixed-period annuity Retirement product in which the number of payments that a recipient will receive is guaranteed. If the recipient dies before the guaranteed number of payments has been distributed, the balance is payable to the beneficiary. If the annuitant outlives the guaranteed period, he or she will continue to receive payments until death; however, no benefits would be payable to a beneficiary in such a case.

Fixed-period settlement option Retirement product stipulation that establishes a fixed period of time over which payments of life insurance policies are made to a beneficiary. Payment amounts vary based on the payout term chosen.

Fixed-route and scheduled service Services that transport seniors along an established travel circuit with designated stops where riders can board and be dropped off.

Freedom-of-choice law State statute that designates the next of kin to make funeral arrangements.

Free look Period of time during which an investor may review contract and agreement papers while reserving the option to cancel or not commit to an investment or plan.

Fully insured Having earned 40 quarters of coverage under Social Security. A fully insured person is eligible for survivors’ benefits for a qualified spouse, child, or dependent parent; a death benefit payment; and retirement benefits for himself or herself, a qualified spouse, and a qualified child.

Functional age Age as determined by what activities or actions a person is capable of.

Funeral Ritual conducted to honor a decedent whose body is present.

Funeral director Individual licensed by the states to arrange or prearrange funeral services.

Funeral rule Trade rule issued by the Federal Trade Commission requiring funeral homes to disclose prices and prohibiting certain deceptive and unfair practices.

Fusion marketing Tactic of creating mutually beneficial alliances with similar but noncompeting professionals who serve the senior market.

Garden plot Cemetery gravesite that has no above-ground marker.

Gasketed Term that describes a burial casket that has seals and other features that retard the entrance of water and protect against rust.

Gatekeeper In the context of home observation programs, a service person who visits a home regularly and is trained to notice anything unusual or any indication of need and report it to the local Area Agency on Aging.

General enrollment period Time span (January 1 through March 31 of each year) during which eligible seniors may sign up for Medicare. The effective date of coverage is the following July 1.

Generalized anxiety disorder Medical condition that impairs daily functioning in which the sufferer experiences excessive worry or anxiety about multiple things.

Generatively Act of attention to one’s legacy for future generations.

Geriatric nurse practitioner (GNP) Nurses who have completed advanced clinical education (often master’s degree level) that focuses on the health and disease issues faced by seniors.

Geriatricians Medical doctors (MD) or osteopaths (DO) who have completed a fellowship-training program in geriatrics.

Geriatrics Medical study of aging.

Gerontology Scientific study of the biological, psychological, and social aspects of aging.

Gerostranscendence Distinctive path toward age-connected spirituality that theorizes that seniors are predisposed to consider the spiritual dimension, which includes a preoccupation with the interconnection among generations, the relating between life and death, and the mystery of life.

Gift splitting Act of doubling tax exclusion amounts of $11,000 per person per year by each exercising the exclusion, effectively allowing a couple to gift a total of $ 22,000.

Glaucoma Elevated pressure within the eye that can result in damage to the retina.

Glucose tolerance Ability of the body to control blood sugar (glucose).

Grave liner Product used to limit ground settlement with in-ground burials. Liners are usually made of concrete.

Grief Psychological response to the loss of a loved person or object.

Gross income Amount used as the starting point for calculating income taxes. It includes all income from all sources (except excludible income, such as municipal bond interest). Items such as wages, commissions, tips, honoraria, interest, dividends, net business income, rents, royalties, gambling income, and partnership income all must be recognized and included in gross income for tax purposes.

Growth hormone Human hormone that promotes physical growth through the complex interaction of several hormones and growth factors.

Guaranteed renewable Condition of an insurance policy that, unless it benefits have been exhausted, it cannot be cancelled by an insurance company and must be renewed when it expires. Under this condition, the company cannot change the coverage or refuse to renew the coverage for any reason, including health condition and marital or employment status, other than nonpayment of premiums.

Guardian Court-appointed fiduciary responsible for a minor or incompetent person.

Hallucination False perception believed to be real that occurs in the absence of adequate sensory experience.

Hands-on assistance Physical help (minimal, moderate, or maximal) without which an individual would not be able to perform one or more activities of daily living.

Health care Treatment or procedure to diagnose or attempt to relieve or cure a physical condition.

Health care proxy Individual in an advance directive named to make health care decisions when the patient is incapacitated.

Home Insurance Portability and Accountability Act (HIPPA) Federal health insurance legislation passed in 1996 that allows, under specified conditions, long-term care insurance policies to be qualified for certain tax benefits.

Health maintenance organization (HMO) Institution that provides comprehensive service benefits, with emphasis on preventive care. Care is typically provided through physicians and facilities that contract with, or are managed by, the organization.

Heir Person entitled to inherit property under state intestacy statutes.

Hemiparesis One-sided weakness, though less debilitating than paralysis.

Hemiplegia Parlaysis on one side of the body, a common disability that results from stroke.

Hemisphere Principle of Communications Theroy of communication that acknowledges the need to emotionally engage a person by positive stimulation of their right (emotional) brains before trying to persuade them through facts, figures, and logic, processed primarily in their left brains.

Hemorrhagic stroke Bursting of a brain artery that spreads blood into the surrounding tissue.

High-density lipoprotein (HDL) “Good cholesterol” that appears to act as a kind of scouring agent, cleansing the arteries of plaque.

Home and community-based service (BCBS) Service that allows people of all ages who have physical limitations to remain independent in the least restrictive setting possible and to be connected with their community.

Home and community-based services waiver Also called 1915© waiver, stipulation that gives states the flexibility to develop and implement creative alternatives to instutionalization.

Home health care In-home services for nursing care or occupational, physical, respiratory, or speech therapy. Also included are medical, social worker, home health aide, and homemaker services. Home health care services may be temporary, intermittent, or long-term.

Homebound Condition in which a patient has a normal inability to leave home and leaving home requires a considerable and taxing effort.

Homemaker services Companies who assume duties required in a normal household when a homeowner or resident is unable to complete such duties themselves.

Home sharing Living arrangement in which a homeowner rents out a room or rooms in exchange for either rent or a combination of companionship, housework, yard work, grocery shopping or rent.

Hospice Medical institution focused on meeting the physical, emotional, and spiritual needs of those dying and their grieving families.

Household The people who occupy a single housing unit. A household includes related family members and all the unrelated people, if any, such as boarders, foster children, etc., who live together. A person living along or a group of unrelated people living together, such as partners or roommates, is also counted as a household.

Housing unit Apartment, house, trailer, or any other structure designed for people to live in.

HTML (hypertext markup language) Programming code used to create Websites.

Hyperosmolarity Condition in which the blood is concentrated with sodium, glucose, and other molecules that normally attract water into the bloodstream. When the kidneys are conserving water, however, this created a vicious cycle of increasing blood-glucose levels and increasing dehydration.

Hypertesion Abnormally high blood pressure.

Immediate burial Final disposition in which the deceased is buried without embalming or a funeral service with the body present.

Impoverishment Outliving one’s income or assets.

Incapacity (loss of capacity) Patient’s inability, as determined by a physician, to make their own health care decision, caused by pain, medications, brain damage, or an unconscious state.

Income cap states States that set an income threshold for Medicaid disability and deny applications based upon the existence of income that exceeds the threshold.

Incontinence Inability to control the release of urine and feces.

Indemnity method Process of paying insurance benefits in which the benefit is a set dollar amount and is not based on a specific service received or on expenses incurred. The insurance company needs to decide only if you are eligible for benefits.

Indirect rollover Transfer of cash or other property between tax-deferred retirement plans, including but not limited to qualified plans or IRAs, in which the owner takes temporary receipt of the funds. The amount rolled over is tax-free and without penalty if completed by the 60th day after the distribution from an IRA or employer plan. Indirect rollovers from qualified plans and 403(b) plans are subject to mandatory withholding by the employer.

Individual annuity Investment product that provides annual payments over the life of one individual.

Individual retirement account (IRA) Investment plan that any individual with earned income can establish and fund. An individual may contribute no more than $ 3,000 in one year to an IRA, and the contribution may be fully deductible, partially deductible, or not deductible.

Infantilize To treat or condescend a person as if they were still a young child.

Infarction Death of brain cells.

Inflation General increase in the level of prices within the economy due to the devaluation of the dollar (i.e., more dollars are required to buy a particular item).

Inflation protection Insurance policy option that provides for increase in benefit levels to help pay for expected increases in the costs of long-term care services.

Inflow Pertaining to the cash flow statement, the dollars, such as from salary, dividends, interest, rental income, alimony, child support, or investment, redemptions, received by an individual during a particular period.

Informal support network Group of people, composed of family members, friends, and neighbors, who collectively care for someone who faces chronic illness or disability.

Information return Tax return that provides information to the tax collector but does not compute the tax liability.

Information triage Narrowing of information by the brain to a level or amount the conscious mind can handle.

Informed consent Legal condition whereby a person can be said to have agreed or given consent to allow something to happen based on a full appreciation and understanding of the facts and implications of the action.

Initial enrollment period Span of time during which seniors who did not elect to take early retirement benefits may enroll in Medicare. They have seven months to enroll, starting three months before the month of their 65th birthday.

Institutional abuse Mistreatment of an older person living in a residential facility (e.g., nursing home, foster home, group home, or board and care facility) by people who have a legal or contractual obligation (e.g., as paid caregivers, staff, or professionals) to provide the elder victim with care and protection.

Institutionalized spouse (IS) Spouse who lives in a nursing facility while the partner continues living at home.

Instrumental activity of daily living (IADL) Activities needed for independent living, including using the telephone, preparing food, shopping, and handling fiancés.

Insurance Device by which an individual can contract with another party to exchange a large, uncertain risk for a relatively small, certain premium.

Insidious onset Development of a disease in which the disease’s presence is not apparent at the beginning.

Interest settlement option Beneficiary’s choice to leave life insurance proceeds with the insurer to accumulate interest at a guaranteed rate. Many insurers pay interest above the guaranteed rate, consistent with investment earnings.

Interment In-ground burial.

Interdependence Mutual, reciprocal relationship between two or more people, whereby people get their needs met better together than they would alone and can also increase the resources available to a person.

Intestate Condition in which a person dies without a valid will in place. Property in such cases is distributed in accordance with state law.

Intimacy Mutual exchange of affection, trust, and confidence.

Intubation Threading a tube to a patient’s lungs to provide ventilation or mechanical respiration.

Inurnment Placing cremated remains in an urn.

Invasive cancer Cancer that progresses to invade surrounding tissues.

Irrevocable beneficiary designation Assignment of a beneficiary to a life insurance policy in which the policy owner does not retain the right to change the named beneficiary.

Irrevocable life insurance trust (ILIT) Institution that towns the life insurance policies of a person. It pays the premiums to keep the insurance in force, collects the death benefits when the insured dies, and distributes the money according to the terms of the trust.

Ischemic stroke Sudden block of an artery supplying the brain with blood that decreases or stops blood flow to the brain.

Itemized deduction Specialized expenses (such as home mortgage interest paid, state and local income taxes, real and personal property taxes, and charitable contributions) that are totaled and then subtracted from adjusted gross income in the tax calculation process. Total itemized deductions are used in place of the standard deduction if the total itemized deduction amount exceeds the standard deduction amount for the taxpayer.

Joint and last survivor annuity Annuity product option in which the annuity is paid over the lifetimes of more than one person. When the first annuitant dies, the annuity payments for the survivor continue, but are sometimes reduced by a quarter or half.

Joint survivorship life insurance Life insurance that covers more than one life. First-to-die life insurance pays benefits upon the death of the first of the two parties to die.

Joint tenants Property that is owned simultaneously by more than one person.

Lawn crypt Below-ground mausoleum.

Leads club Group of professionals who gather together to share business opportunities and potential client information with each other. Lawyers, accountants, and insurance brokers often join the same leads club because they seek similar business prospects.

Lean body mass Total of all parts of the body that are not body fat and are biologically active tissues (e.g., bones, vital organ tissue, central nervous system).

Level of burden index Scale that measures the challenges care givers face. This index combines the number of ADLs and IADLs that require help, as well as the amount of time devoted to care giving.

Life expectancy Length of time that estimates the number of years a person will live.

Life income annuity Annuity product in which payments are distributed only until the annuitant dies. No benefits are payable to a beneficiary.

Life income with period certain settlement option Life insurance option in which payments are guaranteed for a stated amount of time, such as 10 or 20 years, after which, if the annuitant is still alive, he or she continues to receive payments until death, but there is no benefit for a beneficiary. If the annuitant dies before the guaranteed period is over, payments continue to a beneficiary until the end of the guaranteed period.

Life span Maximum length of time biologically possible for a given species.

Life stage Combination of physical and social attributes that define periods of a person’s life, such as adolescence, young adulthood, adulthood, middle age, later maturity and old age.

Lifelines (life review) Activity in which participants recall key events and life altering or meaningful experiences that powerfully affected their lives.

Life-sustaining procedure Medical treatment used to prolong life without reversing underlying medical conditions. This could include mechanical ventilation, renal dialysis, chemotherapy, artificial nutrition and hydration, and other treatments.

Lifetime reserve days Sixty days of coverage guaranteed to each Medicare beneficiary who has exhausted a standard benefit period’s 90 inpatient days and remains hospitalized.

Lipoprotein Combination of cholesterol and protein that circulates in the bloodstream.

Living trust (inter vivos trust) Trust that is established during the life of the grantor. A revocable trust is a trust that can be changed or revoked at any time y the individual to make such decision at that time.

Look-back period Span of time beginning on the date of a Medicaid application going back thirty-six (36) months for transfers of money to an individual and sixty (60) months for transfers to trusts. Transfers within the look-back period create a period of Medicaid ineligibility.

Long-term care insurance (LTCI) Coverage for various custodial care expenses in the event the insured becomes incapacitated as defined in the policy.

Low-density lipoprotein (LDL) “Bad cholesterol” that contributes to the development of heart disease by causing waxy, obstructive plaque buildup within the coronary arteries of the heart.

Lump-sum distribution Retirement plan distribution that meets the following four requirements: made in one taxable year; representative of the full balance to the participant’s credit from all qualified plans of a single type; payable due to the participant’s death, attainment of age 59 ½ or (for common-law employees only) separation from service; and made from a qualified pension, profit sharing, or stock bonus plan.

Macular degeneration Deterioration of the tissue in the center of the retina (the macula) resulting in decreased central vision and reduced ability to see fine detail.

Magnetic resonance imaging (MRI) Procedure using a nuclear magnetic resonance spectrometer to produce electronic images of specific atoms and molecular structures in solids, especially human cells, tissues, and organs.

Major depressive episode Period of more than two weeks in which a person feels sad or has a loss of interest or enjoyment in life; and changes in appetite and sleep, agitation or retardation of movement, fatigue, feelings of worthlessness or guilt, attention and concentration problems, or thoughts of suicide.

Major medical insurance Insurance that covers medical expenses incurred inside and outside of a hospital. It features cost sharing devices (such as deductibles and coinsurance) and a relatively high maximum limit for covered expenses.

Mania Period of elevated or irritable mood, inflated self esteem, decreased need for sleep, extreme talkativeness, racing thoughts or shifting ideas, high distractibility, increased activity, or dangerous behavior that impairs daily functioning.

Marginal tax bracket Tax rate at which the last dollar of income is taxed.

Married couple household with own children Husband and wife living together with children by birth, adoption, or marriage who are under the age of 18 and never married.

Marital deduction Tax deduction that allows for unlimited gifts to a spouse who is an American citizen.

Marital trust Trust that mandates that the income of the trust be paid to the surviving spouse.

Mausoleum Building containing crypts for the burial of the dead.

Means-tested Description of a program that is available to those who meet financial requirements, such as Medicaid.

Mediacaid Program that provides medical assistance for certain individuals and families who have low incomes and resources. It is a jointly funded cooperative program between the federal and state governments.

Medical model Delivery of health care under the supervision of physicians and nurses.

Medically needy Definition of Medicaid applicants whose income levels are higher than others receiving assistance but who have medical bills in excess of their income.

Medicare Federal program providing hospital and medical insurance to people age 65 or older and to certain ill or disabled persons. Benefits for nursing home and home health services are limited.

Medigap Insurance sold by private companies that is intended to supplement Medicare coverage.

Melatonin Hormone that appears to play a part in regulating seasonal changes in the body and assists with sleep.

Member of protected class Individuals residing in a family home who qualify it as a non-countable resource in the Medicaid application. The members include the applicant’s spouse, a child under 21, a child of any age who is blind or permanently and totally disabled, a brother or sister with an equity interest in the home and who resided in the home for at least one year preceding the Medicaid application, or any child who was residing in the home for two years prior to admission to the nursing home and providing care that permitted the applicant to stay in the home.

Memorial park Cemetery restricting burials to garden plots or sited with no above-ground markers.

Memorial service Ritual to honor the dead without the body being present.

Memorialization Installation of a grave marker or memorial to honor the dead.

Mercy killing Intentional act of a health care provider or individual to take the life of a patient. This is a criminal offense, regardless of the motivation.

Metabolism Body’s chemical processes that build and destroy tissue and release energy, thereby generating heat.

Metastatic cancer Cancer that migrates to distant locations.

Mild cognitive impairment (MCI) Subtle but measurable memory disorder. A person with MCI experiences memory problems greater than normally expected with aging, but they do not show other symptoms of dementia, such as impaired judgment or reasoning.

Miller Trust Certain trust that may be set up to create an exemption to help an applicant qualify for Medicaid.

Minimum monthly maintenance needs allowance (MMMNA) Certain portion of an institutionalized spouse’s income permitted to a community spouse to bring the community spouse’s income up the minimum monthly maintenance needs allowance.

Minimum required distribution Amount that must be withdrawn from a retirement account once a certain age is reached.

Molecule Smallest unit into which a substance can be divided.

Money market deposit account Investment vehicle available through savings and loan associations and banks. Earnings rates are determined by the institution and tend to be lower than rates for money market funds.

Mourning Social and cultural response to loss.

Mutual fund Open-end investment tool that pools the money of many investors and hires an investment adviser to invest that money in order to achieve one or more financial objectives.

Net worth Residual value after liabilities are subtracted from assets. Net worth represents the amount that is owned by an individual or family if unencumbered by debt.

Neuroplasticity Ability to learn new things even into advanced age.

Nondeductible IRA Individual retirement account in which contributions are taxable as part of current income.

Nonforfeiture option Limited to permanent life insurance policies, the three standard non-forfeiture options are: lump-sum distribution of cash, value, reduced paid-up insurance, and extended term insurance.

Nonparticipating life policy Insurance agreement in which excess premium payments (dividends) are not distributed to the policy owner.

Noncancelable policy Insurance contract that cannot be cancelled nor have its rates changed by the insurance company.

Nonfamily household Person living alone, or two or more people who live together but who are not related, such as roommates or boarders.

Normal retirement age Age at which full Security old-age benefits are available or otherwise specified in documents.

Nursing home (nursing facility, skilled nursing home) Specifically qualified facility that has the staff and equipment to provide round-the-clock skilled nursing care or rehabilitation services as well as other related health services. On average, its occupants need at least some assistance with an average of 3.8 activities of daily living.

Old-Age, Survivors, Disability, and Health Insurance (OASDHI) program Protection for qualified participants and their beneficiaries against losses associated with retirement, death, disability, and illness.

Old-Age, Survivors, and Disability Insurance (OASDI) Technical name for the Social Security program.

Obsession Persistent thought, idea, or image that is anxiety provoking and, at least initially, believed by an individual to be absurd.

Obsessive-compulsive disorder (OCD) Mental condition defined by recurrent obsessions or compulsions that are severe enough to impair the individual’s daily functioning.

Occupational therapist Health professional who works with patients to improve their ability to perform activities of daily living and tasks in their work environment.

Organ Aggregate of many different cells, held together by a supporting structure, that performs a specific function in the body.

Organizational determination Date from which a person has 60 days to request review of coverage denial under a Medicare Advantage plan.

Osteoarthritis Noninflammatory disorder of movable joints characterized by an imbalance between the synthesis and degradation of the articular cartilage, leading to the classic pathologic changes of wearing away and destruction of cartilage.

Osteoporosis Weakening of bone structure as bone cell breakdown outpaces new bone cell formation.

Outlfow Expenditure or use of cash.

Outer burial container Generic term used to describe grave liners and vaults.

Out-of-hospital do not resuscitate (DNR) order Doctor’s order authorizing emergency medical services technicians to honor a DNR order. Patients may wear some form of identification, such as a bracelet to inform technicians of the DNR.

Palliative care (comfort care) End-of-life care focused not on curing a disease or condition, but on treating pain and physical symptoms, along with providing emotional and spiritual support.

Panic attack Limited period (usually several minutes) of intense fear that comes on unexpectedly, accompanied by multiple physical symptoms.

Parkinson’s disease Progressive nervous disease, occurring most often after the age of 50, associated with the destruction of brain cells that produce dopamine. Parkinson’s disease is characterized by muscular tremor, slowing movement, partial facial paralysis, peculiarity of gait and posture, and weakness.

Participating policy Life insurance policy in which dividends (actually a return of premiums that were excessive, given the insurer’s actual claims experience or level of expenses) may be paid to the policy owner.

Partnership policy Type of policy that allows the insured to protect (keep) some assets if they apply for Medicaid after using policy benefits.

Patient’s best interest Guideline for use by proxy, physician, or hospital ethics committees for determining health care decisions when a senior’s treatment wishes are unknown.

Patient Self Determination Act (42 U.S.C. 1985cc(f) and 1396a(w) Federal legislation requiring institutional health care providers participating in the Medicare and Medicaid programs to inform patients of their right to complete advanced directives.

Payable-on-death (POD) accounts Savings account opened with a funeral director or cemeterian used to fund services, burial, or cremation upon death of the accountholder.

Pension plan Qualified, employee retirement plan. A defined benefit plan provides a specified retirement benefit to participants. A defined contribution pension plan usually provides for periodic contributions from the employee, specified in a written formula, and an unspecified retirement benefit equal to the value of a participant’s account balance at retirement.

Permanent life insurance Policy that has cash value and is designed to be kept until death. Permanent life insurance contracts include: adjustable life, endowments, interest sensitive whole life, limited pay policies, universal life, variable life, variable universal life, and whole life.

Perpetual care Service and fund to maintain a grave site forever.

Persistent vegetative state Condition that limits cognitive function, caused by injury to the cerebral cortex.

Personal emergency response system (PERS) Electronic device designed to let a user summon help in an emergency.

Personal exemption Dollar amount that a taxpayer generally may deduct for each person supported by the income reported on the tax form. Exemptions are subject to phase-out (elimination) based on an excess of the adjusted gross income over a specified threshold amount.

Personal financial planning Process of determining whether and how an individual can meet life goals through the proper management of financial income and assets.

Personal model (consumer-directed personal assistance services) Method of individual health care delivery in which a senior receives in-home services from personal assistants who are not supervised by medical professionals.

Phobia Extreme fear of a specific situation or object.

Physical therapist Health professional who provides services to help patients restore function, improve mobility, relieve pain, and prevent physical disabilities.

Polypharmacy Management of multiple prescription medications for seniors dealing with several chronic illnesses simultaneously.

Power of attorney Written document executed by one person who authorizes another person to act on his or her behalf.

Planned giving Method of distributing assets that provides donors with additional economic benefits for themselves or other beneficiaries. Planned giving includes the use of charitable gift annuities, pooled income trusts, charitable trusts split interest fits, and charitable family limited partnerships.

Planned senior apartment (also known as independent living, congregate living facility) Housing designated for and designed with specific features for older people. Services offered can range from basic maintenance to housekeeping, meal plans, social activities, transportation, and exercise rooms.

Plasticity (brain plasticity) Ability of the brain to learn and change.

Posttraumatic stress disorder (PTSD) Mental condition stemming from a traumatic event. It may involve recurrent thoughts, nightmares, or feelings of reliving the event, great distress, avoidance of thoughts of people who were involved in the event, feeling distant from others, having difficulty experiencing emotions, irritability, trouble sleeping or concentrating, and hyperawareness of surroundings.

Pour-over will Provision of a will that instructs a court to transfer, or pour over, a dead person’s probate assets into a trust, used if a senior has a trust and dies owning property that was not transferred to it.

Prearrangement Advance planning for a funeral or burial, sometimes structured with an agreement to deliver specific goods and services.

Prejudice Negative attitude toward a category or group of people based not on current experience but on preconceived beliefs, favorable or unfavorable belief about the characteristics of a category or a group.

Preneed Funeral or cemetery purchase made before a death.

Preneed plan Arrangement for a funeral or burial in advance of need.

Presbycusis The most common age-related hearing loss; a sensorineural disturbance caused by death of the hair cells in the inner ear.

Primary insurance amount (PIA) Monthly payment to retired workers who begin receiving benefits at full retirement age or if they are disabled and have never received a retirement benefit reduced for age.

Private annuity Transfer of property to an individual not regularly engaged in the issuance of annuities, in exchange for an unsecured promise of periodic lifetime payments.

Private contract Agreement for medicals services between a patient and a provider who does not give services through Medicare. Assignment does not apply to private contracts.

Probate Legal process of administering and distributing an estate after death.

Productive aging Concept of the older population with greater capacity for employment, volunteering, and care giving. As the older population has become healthier, more active, and more economically secure, productive aging has emerged to contradict the mostly negative view of older adults as frail, immobile, vulnerable, or unable to contribute to society.

Professionally managed service Care arrangement in which someone other than the senior makes the decisions about care and services.

Program of All-Inclusive Care for the Elderly (PACE) Health insurance benefit that features a comprehensive medical and social services delivery system and integrated Medicare and Medicaid funding.

Programmed theory Hypothesis that aging follows a biological timetable.

Psychotic Condition in which an individual exhibits symptoms of not being in touch with reality, primarily through hallucinations and delusions.

Pure life income option Life insurance stipulation that pays proceeds over the lifetime of the beneficiary, with no residual benefits available to a second beneficiary if the first one dies.

Qualitative Relating to or expressed in terms of quality. Qualitative research is based on individual, often subjective, analysis.

Quantitative Relating to or involving the measurement of quantity or amount. Quantitative research is often considered objective and repeatable by separate researchers under similar conditions.

Quarter of coverage Measurement used to determine a worker’s insured status (fully or currently) and, therefore, the amount and type of benefits available under Social Security. A worker is credited with one quarter of coverage, up to a maximum of four annually, for each $ 500 of earnings through covered employment.

Radiation therapy Use of x-rays or gamma rays to kill tumor cells in difficult to reach locations. Radiation s also used to eliminate a tumor without destroying large amounts of good tissue.

Reasonable and necessary care Medicare rule used to categorize individual health care decisions.

Rebating Giving or promising a valuable gift if in exchange for the purchases of an insurance policy or other investment.

Reduced paid-up insurance option Life insurance stipulation allowing a policy holder to take the cash value of a policy as paid-up but for a reduced face amount.

Refund life income settlement option Life insurance option that provides the beneficiary with lifetime income with the guarantee that if the beneficiary dies before receiving the full amount of the original life insurance proceeds, the short fall will be paid to an alternate beneficiary.

Relationship marketing Method of business that treats marketing as a process over time rather than single unconnected events and molds the marketing message and tactics to the life cycle of the customer.

Religiosity Devoutness or excessive devotion to religion.

Remains Body of the deceased. (Cremains are remains of a cremated body.)

Representative payee Individual or organization that receives Social Security or SSI payments on behalf of an individual who cannot manage or direct someone else to manage his or her money.

Required beginning date (RBD) For individual retirement accounts (IRAs), qualified plans, and section 403(b) arrangements, the date by which distributions must begin.

Required minimum distribution (minimum distribution) Lowed annual required distribution amount for an IRA holder who reaches age 70 ½.

Respite care Occasional care provided by a third party for the purpose of relieving family caregivers for a period of a few hours to several days.

Revocable beneficiary designation Naming of a life insurance beneficiary in which the policy owner retains the right to change the beneficiary.

Rheumatoid arthritis Chronic disease marked by stiffness and inflammation of the joints, weakness, loss of mobility, and deformity.

Rider Addition to an insurance policy that changes the provisions of the policy.

Ridesharing program Service that arranges for seniors to be driven by volunteer drivers to specific destinations.

Right of survivorship Right inherent in some forms of property ownership that entitles surviving owners to succeed to a deceased owner’s interest in the property outside of probate.

Role Pattern of individual activity that occurs within a specific type of social situation.

Rollover Movement of funds from one retirement plan to another.

Roth IRA Nondeductible IRA with several unique features: Withdrawals are not taxable if left in the account for five years; the owner may continue to make contributions to the account after he or she is age 70 ½; and there is no required beginning date for withdrawals.

Sales pipeline Continuum of business engagement that ranges from first-contact inquiry to most-valued customer.

Sarcopenia Combination muscle loss and increased body fat that results in overall weakening of the body.

Schizophrenia Chronic and severely disabling disorder with symptoms of hallucinations and delusions, disorganized speech and behavior, and deficiency of motivation, emotional expression, or speech.

Section 1115 demonstration wavier Medicaid rule that offers flexibility to states in delivering Medicaid long-term care.

Self-employment tax Social Security tax imposed on income earned by self-employed individuals.

Self-neglect Behavior of some older adults, such as refusing or failing to acquire adequate food, water, clothing, shelter, personal hygiene, medication, or safety precautions, which threatens their health or safety.

Senescence Progressive deterioration of many bodily functions over a period of time.

Separate property Property that was acquired by either spouse before marriage or individually inherited, individually received as a gift, or purchased with individual funds. Ownership of this property belongs exclusively to the spouse that held it prior to marriage, inherited or received it, or purchased it with individual funds.

Sepsis Infection in the blood or other tissues.

Serial care giving Care giving in which each successive caregiver burns out and is replaced by another person.

Serotonin reuptake inhibitor Medicine that relieves symptoms of depression.

Skilled care Daily nursing and rehabilitative care that can be performed only by or under the supervision of skilled medical personnel. This care is usually needed 24 hours a day, must be ordered by a physician, and must follow a plan of care. Individuals usually get skilled care in a nursing home but may also receive it in other places.

Social gerontology Study of the social lives of older people.

Social phobia Extreme fear of public or performance situations in which an individual may feel threatened or embarrassed.

Social policy Actions of governments in making decisions and allocations for social programs such as Social Security, Medicare and Older Americans Act programs.

Social Security Government program in which covered workers meeting certain past-service requirements and their qualified dependents are eligible for limited retirement, medical, disability, and death benefits. The program is funded through a special income tax on covered workers.

Social Security Disability Income (SSDI) Benefit for disabled people under full retirement age who have enough Social Security credits and a severe medical impairment (physical or mental) that is expected to prevent them from doing substantial work for a year or more, or have a condition that is expected to result in death.

Social seminars Events that give advisors and insurance companies opportunities to interact with their targeted population and are marketed to seniors as a gathering rather than a sales pitch.

Social support Network that provides people with a sense of being loved, cared for, esteemed, and valued.

Society Extended group of relationships that has a distinctive cultural and economic organization.

Socioemotional selectivity Tendency of people, as the perceived future shortens, to focus more of their attention and energy on emotional goals, such as maintaining satisfying interpersonal relations, and less on knowledge-related goals, such as getting an education, or researching and comparing different insurance plans.

Special enrollment period Time after an employer’s health plan coverage ceases to be a person’s primary insurance (usually at retirement), during which a senior may enroll in Medicare without penalty.

Spending down Expanding assets in order to qualify for Medicaid.

Spirituality Basic value around which all other values are focused; central philosophy of life that guides a person’s conduct; supernatural and nonmaterial dimensions of human natures.

Stage model of grief Theory of emotional progression through distinct states in response to a traumatic event or loss.

Standard deduction Deduction from adjusted gross income that any taxpayer may take, with the amount available being determined by the taxpayer’s filing status. The standard deduction is used in place of itemized deductions if the standard deduction exceeds the itemized deduction amount available.

Standby assistance Arrangement in which a caregiver stays close to an individual to watch over and provide physical assistance if necessary.

State Health Insurance Counseling and Assistance Program (SHIP) Program with trained volunteers who offer unbiased, one-on-one counseling to help Medicare beneficiaries understand their health insurance benefits and options.

Statement of financial position (also called balance sheet) Declaration that identifies the assets, liabilities, and net worth of an individual or family.

Stock insurance company For-profit insurer owned by stockholders.

Stop loss (upper limit) Maximum out-of-pocket amount.

Stretch-out IRA Retirement account with a beneficiary named who will keep money in a retirement account as long as possible after the death of the original account holder.

STUG (Sudden, Temporary Upsurge of Grief) reaction Behavior seen in response to a specific emotional event.

Subdural hematoma Collection of blood and blood breakdown products between the surface of the brain and its outermost covering (the dura) that remains even several weeks after an injury.

Subjective age Individualized concept of one’s age based on personal feeling.

Substance dependence Mental disorder surrounding abuse of a specific medication or drug. Includes development of a tolerance for the substance; withdrawal symptoms; considerable time spent obtaining, consuming, and recovering from using the substance; desire or unsuccessful efforts to reduce the amount of the substance or stop taking it; use of larger amounts of the substance over a longer period of time than was intended; giving up or decreasing involvement in important social, occupational, or recreational activities because of the substance use; or continuation of substance use despite problems it may be causing.

Substantial assistance Hands-on or standby help required for a person to accomplish activities of daily living.

Substantial gainful activity (SGA) Income-producing work that provides enough money to make a person ineligible for benefits.

Substituted judgment An interpretive decision based on a patient’s advance directive.

Subtrust (bypass trust, family trust, credit shelter trust) Investment vehicle used to avoid the marital deduction and apply the state tax coupon of the first spouse to die. A subtrust provides that the surviving spouse is the primary beneficiary, and may even provide that the surviving spouse is the trustee of the subtrust.

Sundowning Behavioral disorder associated with an increase in confusion and agitation during evening hours.

Supplemental Security Income (SSI) Federal program funded by general tax revenues designed to help aged, blind, and disabled people who have little or no income and require help meeting basic needs for food, clothing, and shelter.

Systolic pressure Measurement (the upper number of a blood pressure reading) of the pressure blood exerts on the arterial walls during heartbeats.

Task model of grief Concept of dealing with grief in which an individual has a number of tasks to complete. The effort given to each task may increase or decrease in importance over the course of the grief.

Tax credit Dollar-for-dollar deduction that offsets calculated tax. Credits are allowed for the elderly and permanently and totally disabled, child and dependent care expenses, foreign taxes paid, expenses for the construction and rehabilitation of qualified low-income housing, and certain education expenses through the Hope or Lifetime learning credit.

Tax elimination (or reduction) Technique that uses deductions, exemptions, and credits to reduce otherwise taxable income or the tax itself, or a technique that results in nontaxable income or economic benefit that is not taxable.

Taxable income Amount upon which the appropriate income tax is calculated. It consists of income after subtracting adjustments, deductions and personal exemptions.

Tax-deductible Term that describes expenses that may be excluded from current taxable income.

Tax-deferred Term that describes earnings or income not subject to federal income taxes until a later date. Regarding earning produced within an IRA, tax-deferred earnings are taxed only upon distribution to the account owner.

Tax-qualified long-term care insurance policy Policy that conforms to standards in federal law and offers certain federal tax advantages.

Tenant-based assisted housing Program that takes it possible for eligible low-income applicants to afford rental housing available in the private market.

Term life insurance (pure protection) Life insurance that provides protection for a stated time period and pays benefits only if the insured dies within that period.

Testosterone Hormone primarily found in men, but also in women in small amounts. Although production of testosterone peaks in early adulthood, most men in older age still produce amounts within normal limits.

Thermogenesis Body’s way of generating heat through shivering.

Tinnitus Hearing condition accompanied by some hearing loss, frequently referred to as ringing in the ears but often sounding more like buzzing, chirping crickets, blowing, roaring, or popping.

Tissue Group of cells that makes up part of the body.

Toileting Getting to and from the toilet, getting on and off the toilet, and performing the associated personal hygiene.

Totten Trust Simple trust agreement that makes a funeral director or cemeterian the beneficiary. The consumer is the owner and, during life, controls the account and pays taxes on any earnings. At the time of death, the principal and earnings are paid to the funeral home and/or the cemetery.

Traditional funeral End-of-life ceremony with a series of rituals and customs to honor the dead, including embalming of the body, an open casket arrangement, services at a house of worship, and n interment.

Traditional giving Method of distributing assets in which a donor enjoys the satisfaction of supporting worthwhile causes while receiving a tax deduction. IN addition to outright lifetime gifts, traditional giving may include leaving items to charity at death or gifting life insurance to charity.

Traditional nuclear family Living arrangement consisting of a husband and wife living together with children by birth or adoption only, with the father as the sole breadwinner and the mother as a full-time homemaker.

Transferring Act of moving into and out of bed, chair, or wheelchair.

Transient ischemic attack (TIA) Mini-stroke caused by temporary disturbance of blood supply to an area of the brain, resulting in a sudden, brief decrease in brain function. It lasts less than 24 hours, most often less than one hour.

Traumatic grief Syndrome with two clusters of symptoms: separation distress symptoms including searching and yearning for the deceased, having intrusive thoughts about the deceased, and experiencing excessive loneliness since the death; and trauma symptoms similar to those in posttraumatic stress disorder.

Treasury bill Short-term obligation of the United States government that is issued at a discount and redeemed at face value upon maturity. Income received upon maturity is not taxed at a state or local level.

Treasury bond Long-term obligation of the United States government. Interest is paid semiannually and is not taxed at a state or local level.

Treasury note Intermediate-term obligation of the United States government. Interest is paid semiannually and is not taxed at a state or local level.

Trust Fiduciary arrangement set up by a grantor whereby property is held and managed for a named beneficiary by a third party, known as a trustee.

Trustee Person or organization that holds and manages the property for the benefit of the trust beneficiary or beneficiaries.

Twisting Use of misleading terms, jargon, language that is confusing.

Underwriting Process of examining, accepting, or rejecting insurance risks, then classifying those selected, in order to charge the proper premium for each.

Urn Container used to hold cremated remains.

Values audit Review used with clients to understand what is important to them when setting personal goals.

Valued social role Position in society deemed worthy of value.

Values questionnaire Inquiry conducted with clients that can help them prioritize what matters to them most.

Variable annuity Investment product in which the benefits paid out vary according to changes in the value of the portfolio supporting the annuity.

Vascular dementia Step-like deterioration in intellectual functions that results from multiple infarctions of the cerebral hemispheres.

Vascular depression Syndrome often experienced by people with vascular illness in which they experience relatively little guilt or sadness, but have poor motivation or initiative, move very slowly, and do not recognize that what they are experiencing is related to a mental disorder.

Vault Structure used in lining a grave to limit settlement with in-ground burials. Vaults are normally made of steel-reinforced concrete and lined with metal or asphalt.

Ventilation Mechanical respiration.

Viewing Funeral practice in which the deceased lies in a casket and family and friends are allowed to view the embalmed remains.

Vital capacity (VC) Amount of air that can be taken in and breathed out rapidly in one very deep breath as a measurement of lung function.

VO2 max (maximum oxygen consumption) Measure of the ability of the heart and cardiovascular system to respond to stress.

Waiver of liability Rule that applies when a senior did not know or could not be expected to know that Medicare would deny payment for lack of medical necessity.

Waiver of premium Provision in an insurance policy that relieves the insured of paying the premiums while receiving benefits.

Weblog (blog) Informal method of online communication that can easily be updated several times a week without the need for any technical or programming skills. A blog allows a writer to parcel out information of his or her choosing, creating an interesting archive of entries.

Whole life insurance Insurance coverage that furnishes life insurance protection at a level premium amount for the insured’s whole life and includes a savings element on which a minimum rate of return is guaranteed.

Will Legal document that specifies how a person wishes to distribute probate property and provides other instructions in the event of death.

Windfall elimination provision Method of figuring retirement or disability benefits when a recipient receives a pension from work not covered by Social Security. The formula used to figure the benefit is modified, resulting in a lower amount.

Zero hour Time for family members to consider how much each will contribute to the care giving of the senior.

The above information was provided by the Society of Certified Senior Advisors (SCSA)