Long Term Care Insurance Riders You May Need

In an effort to cater the diverse needs of insurance consumers, long term care insurance companies introduced several benefit riders. While they come at an additional cost, they provide additional benefits which can be helpful in the future. Below are some of them:

1. The inflation protection rider is probably the most important LTC insurance rider. It increases the policy’s benefit amount to keep up with the rising costs of care. There are varying levels of protection. The higher the level of protection is, the more expensive the premiums.

2. The shared spousal benefit rider allows couples to tap into each other’s benefits in case one of them needs more. It can increase your premiums by 15%.

3. For couples who are buying together, they should highly consider purchasing the spouse survivor ship rider. If a partner dies after 10 years of continuous payments, the surviving spouse can keep the policy without paying the premiums. If the 10-year continuous payment was not satisfied, the surviving spouse will only pay the LTC insurance premiums until the 10-year required period is satisfied.

4. The return of premium rider returns to your beneficiary a portion or all of the long term care insurance premiums you paid less the amount of any benefits you received from the policy. For example, if you have paid $70,000 in premiums, and you have only received $10,000 in benefits, your insurance company will return $60,000 of the premiums you paid to your beneficiary. A 10-year continuous payment may be required before the rider can take effect.

5. The restoration of benefits rider restores your benefits if you remain claim-free for the next 180 days. For example, if you have a benefit period of 3 years and you have used 10 months of it when you had a condition that required you to be in a nursing home, technically you only have 26 months of coverage left in your policy. With the restoration of benefits rider, however, if you remain claim free 180 days after you were discharged; your benefit period will be restored to 3 years.



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