Paige Cerulli Last Updated On: July 1, 2024

Home / Blog / Life Insurance / How Does Life Insurance with A Long-Term Care Rider Work?

Life Insurance with A Long-Term Care Rider

Life Insurance With Long Term Care Rider

Life insurance can give you and your family valuable peace of mind, but it’s important to choose the policy that’s right for your budget and your financial goals. As you explore different policies, you might want to consider life insurance with a long-term care rider. This type of rider can provide financial help if you can’t independently care for yourself.

Free Life Insurance Comparison - Save up to 30%

No junk mail. No spam calls. Free quotes.

No Signup required

What Is Life Insurance With A Long-Term Care Rider?

With a traditional life insurance policy, your beneficiaries – often your family members – receive a benefit after your death. But when you add a long-term care rider to your life insurance, you can use some or all of that benefit if you’re still alive but unable to care for yourself. The rider can help to pay for expenses like a home health care worker or a long-term care facility.

How Does Life Insurance With A Long-Term Care Rider Work?

If you buy life insurance with a long-term care rider, you can only access the benefit if you are chronically ill and cannot perform at least two of the six activities of daily living. Those activities include:

  • Eating
  • Bathing
  • Dressing
  • Grooming
  • Walking or mobility
  • Using the toilet

If you qualify for the long-term care rider, you may need to wait 90 days before accessing the benefits. After the waiting period, you can receive a benefit payout of a percentage of your life insurance death benefit. You’ll receive that payout monthly and can use it to pay for care costs, whether at home or in a care facility. You can’t use the benefits to pay for expenses like doctor visits or prescriptions and will need to rely on your health insurance to help cover those costs.

Keep in mind that each payout you receive is deducted from your total benefit, meaning your beneficiaries will receive a lower benefit after you die. Depending on the cost of your care and the length of time that you need it, you might use some or all of your benefit for your care.

Free Life Insurance Comparison - Save up to 30%

No junk mail. No spam calls. Free quotes.

No Signup required

How Much Does A Long-Term Care Rider Cost?

Life insurance companies charge varying amounts for long-term care riders. When you buy a long-term care rider, you might pay a flat fee of $600 to $800 each year. Since prices can vary so significantly, it’s important to shop around and compare quotes from different insurance companies to make sure you’re getting the best value.

Should You Buy Life Insurance With A Long-Term Care Rider?

Only you can decide whether a long-term care rider is the right choice. Consider your age, your health, and your family’s financial situation and available savings. If you needed care, could your family afford it without significant financial strain? If not, purchasing a long-term care rider might be a good decision.

You can get life insurance quotes for free today to start shopping. As you explore different policies, pay attention not only to the premiums but also the coverage limits and exclusions to find the best option. 

Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.

INSURANCE QUOTES
Stay Up-to-Date
Subscribe to our newsletter and receive alerts, offers, education, and updates in your inbox.