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What effect can a long-term care benefit rider have on a life insurance policy?

A. Increased cash value.
B. Decreased cash value.
C. Increased death benefit.
D. Reduced death benefit.

User Magdalina
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1 Answer

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Final answer:

The long-term care benefit rider on a life insurance policy allows the policyholder to use some of the death benefit for long-term care services, which effectively reduces the death benefit paid to beneficiaries.

Step-by-step explanation:

The question asks about the impact of a long-term care benefit rider on a life insurance policy. Such a rider allows the policyholder to access a portion of the death benefit to pay for long-term care services before passing away. When the long-term care benefit is utilized, it effectively reduces the death benefit that would be paid out to beneficiaries upon the policyholder's death. Although the cash value is an accumulated amount that can serve as an account, it would not necessarily increase due to the long-term care rider. Instead, the use of the rider for long-term care services could even potentially decrease the cash value if the death benefit and cash value are interconnected.

User Piva
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