What Is Long-Term Care Rider? Definition

Why it matters

The rider offers a way to prepare for care costs with one product. Benefits reduce the death benefit or account value, and a waiting period may apply. The insured usually must be unable to perform some daily living activities, and the carrier sets how benefits are paid. NAIC notes that an annuity LTC rider is not the same as long-term care insurance. Cost, limits, and rules vary by carrier and state.

Source: naic.org

Related terms

Chronic Illness Rider: A chronic illness rider is an add-on that lets the insured access part of the death benefit early if a licensed health care practitioner certifies a chronic illness, usually the inability to perform daily living activities.
Accelerated Death Benefit Rider: An accelerated death benefit rider lets the insured receive part of the death benefit while alive if diagnosed with a qualifying condition, such as a terminal illness. It is also called a living benefit.
Rider: A rider is an optional add-on to an insurance policy or annuity that changes or adds benefits for an extra cost. It becomes part of the contract once attached.
Death Benefit: A death benefit is the money a life insurance carrier pays to the beneficiary when the insured dies. It is usually paid as a lump sum and is generally income tax free to the beneficiary.
Income Rider: An income rider is an optional annuity feature that guarantees a stream of lifetime income, often based on an income base that grows at a stated rate. It usually costs an annual fee.

All 241 terms

Why it matters

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