Long-Term Care Rider

A long-term care (LTC) rider is an add-on to a permanent life insurance policy that allows the policyholder to accelerate a portion of the death benefit to pay for qualifying long-term care expenses — such as nursing home care, assisted living, or in-home care — if the insured cannot perform two or more activities of daily living (ADLs) or has a severe cognitive impairment. This rider combines life insurance with LTC protection in a single contract, avoiding the use-it-or-lose-it concern of standalone LTC insurance. LTC rider benefits reduce the death benefit paid to beneficiaries. This type of rider is also referred to as a chronic illness rider, though specific benefit triggers and terms vary by carrier.