Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A long-term care rider attached to a life insurance policy allows the policyowner to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
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.
Why the other options are wrong
- B) The rider pays for LTC services using the death benefit; it does not double the benefit.
- C) The rider is attached to the life policy and is not convertible into a stand-alone LTC policy.
- D) The insurer pays covered benefits under the policy terms; no services are provided free of charge.
Memory hook
LTC rider = spend part of your death benefit on long-term care while you are alive.