Massachusetts Health & Accident Insurance Practice Exam

What is the primary purpose of the Long-Term Care Rider?

1. to increase life insurance coverage premiums

2. to safeguard against the financial burden of long-term care

3. to provide accidental death benefits

4. to cover preexisting medical conditions

The correct answer is: to safeguard against the financial burden of long-term care

The primary purpose of the Long-Term Care Rider is to safeguard against the financial burden of long-term care. This rider is an add-on option to certain insurance policies, typically life insurance, allowing policyholders to access part of their life insurance benefits to pay for long-term care services. This could include assistance with daily living activities, such as bathing, dressing, or eating, which are often necessary for individuals who are aging or facing chronic health issues. By having this rider, individuals can alleviate the potential financial strain that can come with extended care needs, as traditional health insurance often does not fully cover these expenses. The focus of the Long-Term Care Rider is specifically on providing a financial safety net for long-term care services rather than increasing life insurance coverage premiums, providing accidental death benefits, or covering preexisting medical conditions. The specific financial benefits and security it offers in the context of long-term care needs is critical as many individuals face significant amounts of out-of-pocket expenses when needing such care.