____ (abrv)can be added to a life insurance policy that will pay benefits to cover the insured should care be needed in a long-term care facility or for at-home care. The rider may be purchased in one of two ways:
a) integrated into the face amount of the policy, or
b) stand-alone/independent of the life insurance policy.
1) When the long-term care insurance is integrated into the policy, and long-term care benefits are paid under this LTC rider, the payments made use up a portion of the available death benefit. The rider applies only up to a certain percentage of the face value of the life insurance policy.
The problem with this arrangement is that the life insurance proceeds would go to pay for long- term care while the original need for those proceeds might still exist.
2) The (abrv) Rider may be a stand-alone rider to the policy, meaning when the policy pays any long-term care benefits for the insured, it will NOT affect the face amount or cash value of the life insurance policy.The problem with this arrangement is that the policy will cost more in premiums than the integrated rider; however, any (abvr) benefits paid under the independent rider will NOT affect any death benefit paid to the beneficiary when the insured dies. In reality, these (abvr) riders are not intended as substitutes for (abvr) policies. Instead, they should be considered a supplement to such policies.
Long-Term Care (LTC) Rider