New York Child Abuse Identification and Reporting Practice Exam

Which type of rider is used to reimburse for health and social service expenses in a nursing home?

1. Disability Income Rider

2. Long Term Care Rider

3. Critical Illness Rider

4. Accelerated Death Benefit Rider

The correct answer is: Long Term Care Rider

The Long Term Care Rider is specifically designed to address expenses related to health and social services incurred by individuals in a nursing home setting. This rider enables policyholders to access a portion of their life insurance benefits to cover costs associated with long-term care, including personal care and assistance with daily living activities. This type of coverage is essential for individuals who may require extended care due to chronic illnesses or disabilities, helping to alleviate the financial burden that can arise from such situations. In contrast, other riders like the Disability Income Rider primarily focus on income replacement in the event of the policyholder becoming disabled and unable to work. The Critical Illness Rider provides a lump-sum payment upon diagnosis of specified illnesses, which may not necessarily cover ongoing health care needs in a nursing home. The Accelerated Death Benefit Rider allows policyholders to receive benefits early in the event of terminal illness, but it does not specifically cover health and social service expenses as the Long Term Care Rider does.