Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A long-term care rider attached to a life insurance policy:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
An LTC rider accelerates a portion of the life policy's death benefit to cover long-term care expenses while the insured is alive. Each dollar paid for care reduces the death benefit that later goes to beneficiaries. It is a cost-efficient way to add long-term care protection because the premium also buys a death benefit, unlike a standalone LTC policy, which pays no death benefit if care is never needed.
Why the other options are wrong
- A) The LTC rider reduces, rather than adds to, the death benefit; there is no separate unlimited LTC pool in addition.
- B) The rider does not waive premiums after age 65; the base policy's premium obligations continue as written.
- D) The policy remains a life contract with a reduced death benefit; it does not become a standalone LTC policy.
Memory hook
LTC rider = spend down the death benefit early for care. What is used early is gone at death.