A long-term care rider is an add-on to a life insurance policy. It can offer added financial protection if you’re still alive but no longer able to take care of yourself. Let’s dive deeper into life insurance with a long-term care rider so you can decide if it makes sense for you.
With a life insurance long-term care rider, you’ll receive coverage if you’re unable to independently perform two or more of the six activities of daily living, which include eating, bathing, getting dressed, walking, and maintaining continence.1
The payout from a long-term care rider can be taken from your policy’s death benefit to use for expenses, such as nursing home care, private nursing, home health services, and other medical care costs that come with aging.2
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Here’s what you can expect from a long-term care rider:
To qualify for a long-term care rider, you must be chronically ill and unable to perform at least two of the six activities of daily living. In addition, you need a care plan in place with proper documentation.
Many life insurance companies have a 90-day waiting period.3 This means you can’t access long-term care rider benefits before the 90 days are up. You may receive coverage at any time after this period.
If you’re eligible for a long-term care rider, your life insurance company may distribute the payout, which will likely be a percentage of your death benefit every month. While each rider is unique, monthly allowed amounts might be between 1% to 4% of the death benefit.3
A long-term care rider is designed to help pay for expenses that a traditional health insurance policy won’t cover, such as:2
The cost of a long-term care rider will depend on the life insurance company you choose. While many riders can be added on for a flat fee, long-term care riders are typically priced as a standalone product. This makes them more expensive and may add anywhere from $600 to $800 to your premiums annually.2
You can get a long-term care rider when you first purchase a life insurance policy. After doing some research online to compare life insurance companies and types of policies, get a few quotes and choose an option that meets your coverage needs. Then, you can fill out an application and take the medical exam. Once the underwriting process is complete, you can receive coverage and start paying premiums.
The cost of long-term care does not come cheap. In fact, it can cost nearly $9,000 per month to stay in a private room at a nursing home.2 If you’d like to ensure you can afford end-of-life costs, a long-term care rider is worth considering. But if you already have savings available for long-term care or don’t want to spend the extra money on a rider, you may decide you don’t need this product.
A long-term care rider can come in handy if you become chronically ill and need services like nursing home care and home health care, as traditional health insurance doesn’t cover these expenses. In addition to a long-term care rider, you might want to explore other riders that Aflac offers, such as the accelerated death benefit rider and waiver of premium rider. Contact Aflac today for more information on our life insurance policies and get a quote.
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1 ValuePenguin - Should I Buy Life Insurance with a Long-Term Care Rider? Updated March 28, 2023. https://www.valuepenguin.com/life-insurance-long-term-care-rider. Accessed April 21, 2023.
2 Policygenius - Should I Add a Long-Term Care Rider to My Life Insurance Policy? Updated June 20, 2022. https://www.policygenius.com/life-insurance/long-term-care-rider. Accessed April 21, 2023.
3 Investopedia – Long-Term Care Rider. Updated September 6, 2022. https://www.investopedia.com/long-term-care-rider-4802409. Accessed April 21, 2023.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. 68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
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