---
title: "Life insurance with long-term care rider: Definition"
description: "A life insurance policy with a long-term care rider lets the owner use part of the death benefit while alive to pay for qualified care. The rider is an..."
url: https://homecare.preview.multisites.ai/glossary/life-insurance-with-long-term-care-rider/
publisher: HomeCare.com
phone: 800-974-3458
start: https://care.homecare.com/?source=homecare.com
---

Paying for care

# Life insurance with long-term care rider

A life insurance policy with a long-term care rider lets the owner use part of the death benefit while alive to pay for qualified care. The rider is an add-on to a permanent life policy. Benefits paid for care reduce the death benefit that heirs receive.

## Why it matters for your family

A common design pays the benefit in level monthly amounts over a period set by the policy. The Administration for Community Living notes that these riders may not offer inflation protection. Insurers must follow long-term care rules when a policy includes this rider. Families should ask what triggers a payment, which care settings qualify, and how much the death benefit drops. A common mistake is to treat the face amount as a care budget. The rider may pay only part of it. Ask a licensed insurance agent for the policy illustration, and ask a tax professional about tax effects.

Source: [acl.gov](https://acl.gov/ltc/costs-and-who-pays/who-pays-long-term-care/using-life-insurance-to-pay-for-long-term-care)

[Read more: 5 Myths about Long-Term Care](https://homecare.preview.multisites.ai/paying-for-care/5-long-term-care-myths/)

## Related terms

-   [**Hybrid long-term care policy**A hybrid long-term care policy combines life insurance or an annuity with long-term care benefits.](https://homecare.preview.multisites.ai/glossary/hybrid-long-term-care-policy/)
-   [**Accelerated death benefit**An accelerated death benefit is a payment of part of a life insurance death benefit to the insured while still alive.](https://homecare.preview.multisites.ai/glossary/accelerated-death-benefit/)
-   [**Long-term care insurance**Long-term care insurance is a private policy that pays for help with daily living when a person can no longer manage alone.](https://homecare.preview.multisites.ai/glossary/long-term-care-insurance/)
-   [**Life settlement**A life settlement is the sale of a life insurance policy to a third party for cash.](https://homecare.preview.multisites.ai/glossary/life-settlement/)
-   [**Elimination period**An elimination period is the waiting time in a long-term care insurance policy before benefits begin.](https://homecare.preview.multisites.ai/glossary/elimination-period/)
-   [**Private pay**Private pay means a family pays for care directly from its own money.](https://homecare.preview.multisites.ai/glossary/private-pay/)

[All glossary terms](https://homecare.preview.multisites.ai/glossary/)

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