A long-term care accelerated death benefit rider is a Universal Life or Whole Life add-on that provides valuable coverage that may cost less than you think. This rider is easy to purchase as part of a life insurance policy from Erie Family Life Insurance Company.
It’s not something you want to think about, but most of us will need long-term care at some point in our lives. Your need for care may develop suddenly, brought on by a major health event like a heart attack, stroke or injuries from a car accident, or develop gradually as you age or when a chronic illness gets worse.
Planning now will give you the opportunity to protect yourself from the full effect of the high costs of long-term care. You can choose the level of care that you want with an eye toward preserving the bulk of your savings or estate, while relieving your family members of the burden of making these decisions for you at a stressful time.
It’s also important to keep in mind that private health insurance or Medicare may not pay for the long-term services that you need, so taking some time to develop a plan for yourself and your loved ones that can be enacted should the need arise is a smart financial move.
What is a long-term care rider?
A long-term care accelerated death benefit (LTC) rider is an optional add-on to a qualifying Universal Life or Whole Life insurance policy that provides financial support if you need hands-on daily care from a nurse or a health aide for long periods of time. This care can be received at your home or in health care facility.
The benefits are triggered when a licensed health professional¹ certifies that you are unable to complete at least two activities of daily living independently, such as bathing, dressing, eating, using the bathroom or moving in or out of a bed.²
The coverage for an LTC rider is provided through an acceleration of death benefits on a life insurance policy. That means the payments that you receive to cover long-term medical expenses are subtracted from the amount that will be paid to beneficiaries through the life insurance policy after your death.³
For many, an LTC rider is a more appealing option than a stand-alone LTC policy, which may be expensive and could require more extensive underwriting. Plus, Erie Family Life’s LTC Rider is fully guaranteed and will not increase in price each year.
What Erie Family Life Offers
With a Long-Term Care (LTC) Accelerated Death Benefit Rider from Erie Family Life Insurance Company,⁴ you’ll have the flexibility to use your money for what you need. Here’s how the coverage works:
You can choose a monthly benefits distribution of 2 percent, 4 percent or 8 percent of the death benefit of the life insurance policy. You can collect (as long as you meet eligibility criteria as outlined in the policy) up to the value of the residual death benefit.2 (The minimum payable for any month is $1,000.)
The LTC benefits are distributed directly to you and can be used for anything you deem appropriate, including adult day care services, assisted living care, home health care and other forms of care.⁵
The acceleration percentage does not change with payment of benefits, unless you request a change when you have a claim.
When you add an LTC rider to a Universal Life or Whole Life policy, you’ll also have the convenience of working with one company and paying one premium.
Ready to get started? To work out the details, get in touch with a local ERIE agent. Every Erie Insurance policy comes with your very own local and licensed ERIE agent who will give you that personal touch—coverage you want based on your needs and circumstances. Our agents will go over the options, help you consider the variables and make the process a whole lot easier.
1A licensed health care practitioner means a physician, as defined in 1861(r)(1) of the Social Security Act, a registered professional nurse, licensed social worker or other individual who meets requirements prescribed by the Secretary of the Treasury.
2The benefits of EFL’s Long-Term Care Accelerated Death Benefit Rider become available if you are unable to independently complete two of the following six activities for daily living, as certified by your licensed health care professional: (1) bathing, (2) maintaining continence, (3) dressing, (4) eating, (5) using the restroom, (6) transferring to and from bed.
3Funds accessed through the Long-Term Care Rider can be drawn up to the value of the residual death benefit, the lesser of $25,000 or 10 percent of the face amount. The face amount will be reduced proportionally for any reduction in face amount not due to acceleration under the long-term care acceleration rider.
4ERIE® life and long-term care insurance products and services, provided by Erie Family Life Insurance Company, based in Erie, Pa., a member of Erie Insurance Group, are not available in New York. The rider may only be purchased in conjunction with a qualifying life policy, and is not available in The District of Columbia. See individual policies for specific coverage details. Certain terms and limitations may apply. Refer to our disclaimer for additional information.
5We reserve the right to require additional proof satisfactory to us that the Insured continues to be chronically ill. We may request such proof of continued chronic illness once every 90 days; we may require a physician, designated by us, to examine the insured at our expense.
This is a solicitation of insurance. An agent (or the company) may contact you. Purchase of coverage is subject to medical exam and underwriting approval. The policy has terms, limitations and exclusions under which the policy may be continued in force or discontinued. For costs, complete details and licensure information, contact an ERIE agent.