Health · Chapter 17 · Long-Term Care
LTC Riders & Hybrid Plans
Definition
Accelerated death benefit rider: lump-sum share of a life policy's death benefit on terminal diagnosis (NOT LTC insurance under the NAIC model; payouts reduce the death benefit). LTC rider: monthly benefit carved from the face amount, same ADL/cognitive triggers. Hybrid (linked/asset-based): whole life or annuity + LTC — use it for care, or the unused value pays out as income/death benefit.
In plain English
Hybrids kill the use-it-or-lose-it objection: somebody always collects.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms