When you add the long-term care rider to your policy, any payout is an acceleration of your life insurance death benefit.
• You select the long-term care specified amount when you buy your policy.
• The long-term care benefits are paid income tax free after qualifying requirements are met.
• If you never need long-term care, your beneficiaries will receive an income tax-free death benefit as long as your policy remains in force.
• If you do need long-term care, your beneficiaries will still receive the greater of any unused long-term care benefits or 10% of the based policy’s specified amount (less any policy indebtedness) thanks to the guaranteed minimum death benefit.