This blog post is designed to provide general information on the subjects covered. It is not, however, intended to provide specific estate planning, insurance, tax or legal advice. Please note that LTC Consumer and its representatives do not give financial planning, tax or legal advice. You are encouraged to consult with your tax advisor or attorney concerning your own situation.

What Are Common LTC Insurance Riders and What Do They Do?

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Many Long Term Care insurance policies come with lots of built-in features and protection. LTC riders, or options as we call them, offer even more protection for an additional cost. Depending on the insurance carrier and product, LTC options may vary. The following are the most common LTC options available.

Inflation Protection

Inflation protection options vary by carrier and are an important feature to select with your policy. A nice benefit pool today may not mean as much in 20-30 years when you need care. Some inflation protection is better than none and some options more expensive than others. Review inflation options with an LTC Specialist to decide which is right for you.

Joint Waiver of Premium

This option is available when you buy coverage with your spouse or partner. Joint Waiver of Premium allows your partner’s premiums to be waived if you go on claim, or vice versa. Certain carrier limitations may apply.

Monthly Benefit

Products without a built-in monthly benefit may offer a Monthly Benefit option. The feature is worth the extra cost and is generally an affordable add-on. It allows you to receive coverage for services up to the monthly maximum rather than a daily maximum.

Nonforfeiture

What if you ever canceled your policy? Is the money invested wasted? Not so if you add the Nonforfeiture option. Nonforfeiture gives you access to reduced coverage based on premiums paid if you cancel your policy for any reason.

Return of Premium

One of the biggest concerns people have is, “What if I don’t use my policy?” There’s good news. With the Return of Premium option, your beneficiary will get your premiums back, less any claims paid, in the event you pass away and don’t use your full policy. Certain carrier restrictions may apply.

Shared Care

Sharing is caring, and it’s no different with the Shared Care option. If you buy an LTC policy with your spouse or partner, you can add-on this option to share your benefits. Shared Care acts as a bridge between both benefit pools allowing you to dip into your partner’s policy if you use all of yours.

Security Benefit

If your partner doesn’t have an LTC policy, the security benefit option can make sure they are cared for while you receive LTC services. Your policy will pay an additional percentage of your monthly benefit that can pay for care or living expenses for an uninsured partner.

Survivorship

This option can be purchased when you buy coverage with your spouse or partner. If one partner passes away after both policies are inforce for 10 years, the premium is waived for the surviving partner for the remainder of their lifetime. Certain carrier restrictions may apply.

Waiver of Elimination Period for Home Health Care

Before receiving LTC benefits, you must first satisfy the elimination period. The Waiver of Elimination Period for Home Health Care option allows you to be reimbursed for home care services from day one!

 

At LTC Consumer, we help educate consumers on the importance of long term care planning and the options available. Speak with an LTC Specialist today to learn more and to customize an LTC plan.

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