State RegulationsOH specificDifficulty 2/5
A life insurance policy includes a long-term care rider. Under what condition does the rider begin paying benefits?
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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 policy advances the death benefit to pay for qualified long-term care services when the insured satisfies the policy's benefit triggers, which measure the need for care through activities of daily living and cognitive impairment (see OAC 3901-4-01(H)(7)). The rider is authorized for life insurers under ORC 3923.44(K), and payments reduce the death benefit.
Why the other options are wrong
- B) Age alone is not a benefit trigger; the insured must meet the care-based trigger conditions.
- C) Exhaustion of cash value is not the trigger; the rider pays for qualified care needs.
- D) Payment at death is the base policy's death benefit; the rider's purpose is payment while the insured is alive and needing care.
Memory hook
LTC rider: nursing need, not age, turns the benefits on.