Long term care insurance might be one of the most important insuranceproducts 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.
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?”
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.
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.
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.
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.
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: