Long-Term Care Insurance: Nonforfeiture Benefit Rider
IMPORTANCE RATING: 1
This rider states that if you cancel your long-term care insurance policy, a minimal amount of paid up insurance will remain in force, to slightly compensate you for premium payments paid to the insurance company.
The amount of paid up insurance coverage
is normally equal to the cumulative amount of premium you paid. For
example, if your annual premium is $3,000 and you canceled the policy
after 5 years, you would have coverage with a maximum lifetime benefit
RECOMMENDATION: LTC insurance becomes
more valuable the longer it's in force. Only 4% of LTC insurance
policyholders have canceled their policies during the first 10 years
they were in force. This rider is NOT a good value- Do not purchase it!
Return from Nonforfeiture Benefit Rider to Customizing Your Long-Term Care Insurance Coverage