Long Term Care Certification Practice Test

Regarding the long-term care insurance rider, which statement is true?

1. Benefits significantly reduce the face amount

2. Benefits can be adjusted based on age

3. Benefits do not affect the face amount

4. Benefits are paid out only upon policy cancellation

The correct answer is: Benefits do not affect the face amount

Long-term care insurance riders are designed to provide additional coverage options that can enhance the primary policy. When discussing the interaction between benefits from these riders and the face amount of the policy, it is significant to recognize that the benefits provided through the rider do not impact the original face amount of the insurance policy. This means that when benefits from a long-term care rider are utilized, they do not reduce the total amount the policyholder originally secured under the main life insurance policy. This structure allows policyholders to benefit from long-term care benefits while still retaining the full value of their life insurance coverage. This feature is particularly advantageous for ensuring financial security as both life insurance and long-term care needs can be addressed simultaneously. In contrast, there are other considerations with the remaining options, where benefits can alternate based on age or might affect other elements of the policy. However, these do not influence the core understanding of how rider benefits function in relation to the face amount of the primary policy.