LTC Insurance Non-Forfeiture Rider 

Do you know what a ‘non-forfeiture’ rider is?

The rider is designed to ensure that if you lapse your long-term care policy (i.e., stop paying premiums) after a specified number of years, you retain some benefits from the policy. “Reduced Paid-Up Benefit” and a “Shortened Benefit Period.”

Reduced Paid-Up Benefit: if you lapse your policy after a specified number of years, the policy will continue with reduced daily benefit amounts.

Shortened Benefit Period: the policy will continue to cover the same benefits that would have been covered under your policy until the nonforfeiture benefit amount is exhausted.

In other words, the “Reduced Paid-Up Benefit” provides reduced benefits for the original term of the policy, and the “Shortened Benefit Period” provides full benefits for a reduced period of time.

When you are ready to talk to an expert about a LTC Insurance non-forfeiture rider, schedule a call: Find more long-term care stories and resources in our blog.

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