Friday, December 11, 2015

Long Term Care Basics: Insurance Riders

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Long term care insurance might be one of the most important insurance products in the market today
but it is also one of the most complicated. Most of its added features and riders can add extra value for your money, but it can also make the entire process of shopping for a policy more confusing. This article will provide you with long term care basics that can help you better understand the advantages and disadvantages of these riders.

Inflation Protection Rider

To keep up with the rising costs of care, the inflation protection rider increases the benefit amount annually. However, this rider can also double insurance premiums. Everyone is encouraged to include this rider on their policy but age must be considered in deciding the appropriate level of protection to buy. Older policy owners can settle for whatever protection they can afford but younger policy owners are encouraged to buy as much as 5% compound inflation because chances are, they will only need cared 15 or twenty years from now and by then, the costs of care might be too expensive than today.

Return of Premium

The return of premium rider returns some or all of the premiums to your beneficiary in case you die without using your policy. This rider is insurance companies’ response to queries such as “what if I’ll never need long term care?”

Shared Benefit Rider

The shared benefit rider allows couple to use each other’s benefits in case one of them ends up needing more coverage than the other. This rider is beneficial but it is also a bit risky since couples are playing with the odds that only one of them will need long term care for an extended period.

Non-forfeiture Rider

The non-forfeiture rider protects the premiums you have paid in case you become incapable of continuing payments. With this rider, the insurance company will return all or some of the premiums you have paid even if you drop your policy.

Spouse Survivorship Rider

The spouse survivorship rider frees the surviving spouse from having to pay premiums in case his partner dies or need long term care after 10 years of continuous payment.


These riders can definitely add value to your policy but depending on your situation, they can also be unnecessary expenses. Carefully evaluate your needs to determine if a particular rider is right for you or not. 

Visit these online resources for more information about the basics of long term care:

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