Long-Term Care Rider

Use a portion of the death benefit to pay for qualified long-term care services while alive — An LTC rider on a life insurance policy accelerates or redirects part of the death benefit to pay for qualified long-term care services, such as nursing home, assisted living, or home care, while the insured is alive. The benefits paid reduce the death benefit dollar for dollar. Tax-qualified riders can provide tax-free benefits under IRC Section 7702B. This combination lets the client address both death protection and long-term care exposure with a single policy.

National insurance concept

Accelerating a portion of the death benefit to pay for covered long-term care services. — An LTC rider on a life insurance policy advances a portion of the death benefit to pay for covered long-term care services when the insured qualifies, usually by needing help with a specified number of activities of daily living or by having a cognitive impairment. The amounts paid reduce the death benefit remaining for the beneficiary. Tax-qualified riders follow the rules of IRC Section 7702B, and agents must complete the LTC training required under CIC Section 10234.93 before marketing them.

National insurance concept