Final answer:
A long-term care benefit rider can provide coverage for long-term care expenses on top of the death benefit in a life insurance policy.
Step-by-step explanation:
A long-term care benefit rider can have a significant impact on a life insurance policy. This rider provides coverage for long-term care expenses, such as nursing home care or in-home care, in addition to the death benefit provided by the life insurance policy. By adding this rider, the policyholder can ensure that they have financial protection in case they need long-term care services in the future.
For example, let's say a person has a life insurance policy with a long-term care benefit rider. If they need long-term care due to a chronic illness or disability, they can access a portion of the death benefit to cover the cost of care. This additional coverage can help ease the financial burden on the policyholder and their family.
It's important to note that the long-term care benefit rider may affect the overall cost of the life insurance policy. Adding this rider typically increases the premium amount due to the additional coverage provided. However, the peace of mind and financial protection it offers may outweigh the cost for individuals who want to plan for potential long-term care needs.