How a long-term care rider works
A long-term care rider can cover care and services if you should become unable to manage self-care due to disabling medical, physical, or cognitive conditions. This “self-care” refers to “basic activities of daily living,” such as getting dressed, getting in and out of bed, using the bathroom, bathing and grooming, eating, and walking, among other activities.
An LTC rider can cover many different forms of care, including in-home care, nursing home care, adult day care, and long-term care facilities, among others.
Reasons for purchasing a long-term care rider
Statistically, at least 70% of people above the age of 65 will require some amount of long-term care. This means that most seniors should be prepared to enter and pay for long-term care at some point.
Without insurance, the costs of long-term care can be overwhelmingly expensive, and can quickly deplete savings. For example, in 2011 the average monthly cost for assisted living was $3477, which translates to over $40,000 per year.
The cost of a long-term care rider is significantly less than the cost of a dedicated long-term care insurance policy, while providing many of the same benefits to the insured. If you are worried about needing long-term care at some point, purchasing a long-term care rider can help lessen any anxiety you may be feeling about how to pay for that care.
Long-term care rider cost
The addition of a long-term care rider often results in a significantly higher premium. That said, the cost of a long-term care rider is usually much less than the cost of a separate long-term care insurance policy.
To learn about long-term care insurance, see our article Long-Term Care Insurance.