Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A long-term care (LTC) rider attached to a life insurance policy typically provides long-term care benefits by:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
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.
Why the other options are wrong
- A) The rider draws on the death benefit; it is not a separate unlimited medical expense policy.
- B) LTC riders are not Medicare supplements; Medicare supplement and LTC are distinct products serving different needs.
- D) The policy is never surrendered to a facility; the insured keeps ownership while benefits are accelerated.
Memory hook
LTC rider spends the death benefit early on care.