Whether a long-term care (LTC) rider on a life insurance policy is "worth it" depends on individual circumstances and needs. Here are some factors that can help you make the decision:
Future Care Needs: If you anticipate needing long-term care due to health conditions, family medical history, or other factors, an LTC rider might be a wise investment.
Financial Resources: If you have significant savings that could cover potential long-term care expenses, you might not need the additional coverage. On the other hand, if these costs would create financial hardship, an LTC rider can provide significant protection.
Cost of Rider: The cost of adding an LTC rider can be substantial. It's crucial to weigh the additional cost against the potential benefits.
Impact on Beneficiaries: Using an LTC rider reduces the death benefit of your life insurance policy, which can impact your beneficiaries. If leaving a full death benefit is important, you might prefer to explore other options for covering long-term care costs.
Other Coverage Options: Before deciding on an LTC rider, consider other forms of long-term care insurance. Standalone LTC policies, for instance, often provide more comprehensive coverage. However, if you don't use the benefits, all the money from premiums is not returned to your beneficiaries, unlike with an LTC rider.
Given these considerations, whether an LTC rider is "worth it" is a highly individual decision.