Long-Term Care Insurance: Guaranteed Insurability Option

IMPORTANCE RATING: 2

This rider, also known as The Future Purchase Option allows you to purchase additional long-term care insurance in later years without going through the health-qualifying process again.

This means that if you develop a health condition that would normally exclude you from purchasing additional coverage, this rider will allow you to purchase a pre-determined, limited amount of additional coverage in future years.

This benefit normally offers the option to purchase additional coverage at pre-determined intervals during the life of the policy. For example, the insurance company may allow you to exercise this option every 2 years.

If you elect to exercise the option, your premium for the additional coverage will be based on your new attained age - not the age at which you initially purchased the policy.

RECOMMENDATION: Depending on the cost, this can be a worthwhile rider at advanced ages, due to the increased susceptibility for developing health conditions as we age.

But if you are under 65, and have been in good to excellent health all of your life, we recommend concentrating your premium dollars on purchasing additional benefit amount coverage, rather than spending money on this rider.