Living Benefit Rider

living benefit Rider

A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits. any of several life insurance policy riders designed to provide access to the policies face amount while the insured is alive.

long-term care Rider

Provides up to 100% of the policy benefits if the insured qualifies for long-term care benefits as defined in the rider, such as the inability to perform 2 out of 6 activities of daily living. Any payout is an acceleration of the life insurance death benefit, meaning it will reduce the ultimate death benefit payable to the beneficiary. The amount of protection is determined at the time of policy purchase. Long-term care benefits are paid income tax free after the insured meets the qualifying requirements.

Living Benefits

The policy owner can borrow against the cash value while the policy is in effect, or can receive the cash value when the policy is surrendered. the funds from cash values that life insurance provides these cash values are used during the insurer's lifetime.

accelerated benefits Rider

Will pay proceeds prior to death for those with a terminal illness. a benefit, provided through a policy provision or Rider, that pays out part of a life insurance policies death benefit while the insured is still alive if the insured is terminally ill or suffers a disabling injury. typically pays up to 50% of the face amount.

two types of benefit riders

accelerated benefits Rider or provision, long-term care Rider

integrated option

this option draws LTC benefits from the life insurance policies face amount

generalized or independent option

under this option, LTC Rider benefits are separate from the life policy death benefit