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 of $15,000.

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!