Comparing Policy Riders: Living Benefits vs. Stand-Alone Long-Term Care
The decision to address potential long-term care (LTC) needs often involves comparing the **Accelerated Death Benefit (ADB) Rider** (Living Benefits) on a permanent life policy with a specialized, stand-alone Long-Term Care (LTC) insurance policy.
The Trade-Offs
| Feature | Life Policy with ADB/LTC Rider | Stand-Alone LTC Policy |
|---|---|---|
| LTC Benefit Funding | Accelerates (reduces) the death benefit | Independent benefit; premiums can rise |
| Premiums | Fixed and guaranteed (built into the life policy) | Premiums are NOT guaranteed and may increase |
| Unused Funds | The remainder is paid as a death benefit | The premium is generally lost if unused |
The Hybrid Advantage
The hybrid life policy with an LTC rider is attractive because it offers a “money-back guarantee”—if you don’t need the LTC benefit, the money is paid as a death benefit. The stand-alone policy may offer more generous benefits or longer coverage periods, but at the risk of volatile premiums.
Disclaimer: This content is for informational purposes only and is not financial or legal advice. Review the specific benefit triggers, waiting periods, and maximum monthly payout limits of both options before choosing.