What benefit does a Long-Term Care Rider typically provide?

A Long-Term Care Rider typically provides a benefit that allows the policyholder to access a portion or even the full death benefit of their life insurance policy if long-term care services are needed. This means that if the insured requires assistance with daily activities due to a chronic illness, disability, or cognitive impairment, they can receive funds from their life insurance to cover the costs associated with long-term care.

This feature is valuable because it effectively enhances the utility of the life insurance policy, ensuring it serves not just a death benefit but also a living benefit. By enabling access to these funds, the rider helps alleviate the financial burden associated with long-term care services, which can be substantial. Additionally, the ability to draw from the policy’s death benefit helps policyholders maintain their independence and quality of life while addressing their healthcare needs.

In contrast, the other options do not accurately reflect the primary benefit offered by a Long-Term Care Rider. Life insurance benefits only do not encompass the twin advantages of life coverage and long-term care. Reduced premiums for long-term care services do not align with the rider's purpose, which focuses on providing benefits rather than a discount on premiums. Temporary insurance coverage at standard rates lacks relevance to the concept of long-term care, which is about ongoing