Riders for Long Term Care (LTC) Insurance Plans

Riders can significantly impact your retirement

These are several of the most popular Long Term Care Insurance rider options. Below are general and nonspecific definitions.

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Shared Benefit Amount Rider

This rider allows access to a shared pool coverage once their individual coverage has become fully exhausted. In effect, this protects the couple from one of them having an unexpectedly long stay in a long term care facility.

Benefit Extension Rider

Offers an extension on the benefit period allowing the benefit to last for an increased amount of years. Depending on the company or type of rider this can include anything from a 4 year to lifetime extension.

Shortened Benefit Period Nonforfeiture Rider

The benefit is paid so long as the policy remains in force for a specified period and then lapses do to a failure to pay the policy premium. This continues until the total benefits paid reaches a pre specified limit. Typically calculated in comparison to the total premium payments or the benefit value. 

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Full Return of Premium Rider

Upon the death of the insured, assuming the policy remains in force, the total of all premiums paid by the policy owner will be paid to the beneficiary. For joint policies the second to die is the beneficiary of the returned premium.

Limited Return of Premium Rider

Upon the death of the insured, assuming the policy remains in force, a partial total of all premiums paid by the policy owner will be paid to the beneficiary. For joint policies the second to die is the beneficiary of the returned premium.

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Waiver of Premium Rider

Premium payments are waived when the benefit payments start to be paid out.

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Inflation Protection Rider (COLA) 

This cost of living adjustment rider protects the benefit amount from being weakened by inflation overtime. These riders can operate in several different ways, both simple and compounding. Protecting your benefit from the inflation rate can help your benefit retain value and buying power over time. 

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Other less common riders do exist and if you'd like a better idea of how Long Term Care Insurance can be tailored to fit your needs as an individual please click below to schedule a complementary consultation with with Michael Romanello, PRO Financial Network's Chief Planner.

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