LTC and Chronic Illness Riders

• One Policy, Two Needs: Combines life insurance protection with the ability to cover care costs, without purchasing a separate LTC policy.
• Built-In or Optional: Many riders come standard with the policy or can be added for a cost.
• No Additional Underwriting in Some Cases: In certain designs, rider approval may align with the base policy, streamlining the application process.
• Client-Friendly Framing: Easier to introduce in a life insurance conversation, helping advisors shift naturally into care planning.
• Cost-Efficient Entry Point: Riders may offer a lower-cost way to address care needs compared to standalone LTC or linked benefit solutions.

LTC and chronic illness riders are ideal for:

• Clients Buying Permanent Life Insurance who want added protection for life events beyond death. 
• Younger Buyers who aren’t yet ready to commit to a standalone LTC plan.
• Clients Seeking Simplicity with one policy and consolidated benefits.
• Care Planning Hesitators who need a conversation starter or alternative to traditional solutions.
• Estate Planning Clients who want access to death benefit funds during their lifetime, if needed for care.

• Attach the Rider: Clients select a life insurance policy that includes a chronic illness or LTC rider, either built-in or as an add-on.
• Trigger a Claim: If the insured meets the eligibility (typically two ADLs or cognitive impairment), a portion of the death benefit becomes available.
• Access Funds: Benefits are paid as monthly reimbursements or lump sums, depending on the rider and carrier design.
• Preserve Flexibility: If no care is needed, the full death benefit is still available to the policy’s beneficiaries.