A long term care rider is an optional feature added to a life insurance or annuity contract that provides long term care benefits if the insured meets specified eligibility criteria, such as inability to perform activities of daily living or severe cognitive impairment. The rider typically allows the policyowner to access a portion of the death benefit or a separate benefit pool to pay for qualifying care in various settings, including home care, assisted living, and nursing homes. Long term care riders offer a way to combine protection against death and extended care needs in a single contract, often with more stable premiums than stand alone LTC policies.

In practice, advisors present long term care riders to clients who are interested in addressing care risk but are hesitant about traditional LTC insurance because of potential rate increases or the possibility of never using the benefits. They explain how the rider accelerates or uses policy values, the maximum monthly or annual benefit, any waiting periods, and how inflation protection may be structured. Advisors compare rider based solutions with stand alone policies in terms of underwriting, flexibility, and residual death benefits. They also clarify that using LTC benefits reduces the amount left for beneficiaries as a death benefit. Claims involve documenting functional or cognitive impairment and coordinating with doctors and care providers. By understanding long term care riders, producers can offer versatile solutions that address both legacy and care concerns, tailoring recommendations to the client's age, health, and risk tolerance.