State RegulationsMA specificDifficulty 1/5
Which living benefit provision lets a Massachusetts life insurance policyholder use part of the policy's death benefit to help pay for nursing home care or home health services?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A long-term care rider accelerates part of the life policy's death benefit to pay for qualified long-term care expenses such as nursing home or home health care. In Massachusetts, long-term care riders on life policies fall within the long-term care framework administered by the Massachusetts Division of Insurance at 211 CMR 65.00, working alongside the accelerated benefits rules at 211 CMR 55.00. The rider converts death protection into living care money when the insured needs it most.
Why the other options are wrong
- A) Waiver of premium only suspends premium payments during disability; it never pays care costs from the death benefit.
- B) Guaranteed insurability lets the insured buy more coverage later; it provides no money for care expenses.
- D) An accidental death benefit pays extra only when death results from accident; it does nothing for living care needs.
Memory hook
LTC rider: the death benefit pays for the nursing home instead of the funeral.