Long Term Care Policy Riders: Paid Up Premiums

Paid-Up Premiums Rider

The provisions in the sample long term care insurance policy clearly state the specific conditions under which benefits will not be paid. Most policies contain provisions similar to those outlined below.

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This Rider provides for Your Policy to be Paid-Up at the later of the Policy Anniversary on or after Your 65th birthday or the tenth (10th) Policy Anniversary.

This Rider is part of the Policy to which it is attached if it is referred to on the Schedule of Benefits page of the Policy.

Premiums Paid-Up to Age 65

Once Your premiums have been paid to the later of the Policy Anniversary on or after your 65th birthday or the tenth (10th) Policy Anniversary, Your policy will be Paid-Up.

“Paid-Up” means no further premiums are payable, but the Policy remains in effect.

Any premium increase which results from a change in benefits under the terms of this Policy will be treated separately for purposes of this Rider. Each premium increase will not be Paid-Up until the later of the Policy Anniversary on or after Your 65th birthday or ten (10) years from the effective date of the change.

Effective Date of This Rider

This Rider takes effect on the Rider Effective Date shown below.

Termination of This Rider

This Rider will end on the earlier of:

1. the last day of the Policy Month in which We receive Your written request to end this Rider. In this case, You must return the Policy to Us. We will change the Policy and return it to You; or
2. the date on which the Policy ends; or
3. the date nonforfeiture coverage becomes effective under the Policy.

Premium for This Rider

The premium for this Rider is shown in the Premium Schedule on the Schedule of Benefits page of this Policy. The same conditions that apply to the premium for the Policy will apply to the premium for this Rider.

Tax Note

Premiums paid in this manner may be treated differently than premiums paid under other premium payment methods for tax purposes. Consult your tax advisor for further information.

In all other respects, the provisions and conditions of the Policy remain the same. This rider is subject to the provisions of the Policy which are consistent with this Rider.

Rider Effective Date: 00/00/00

Case Studies: Long-Term Care Policy Riders – Paid Up Premiums

Case Study 1: John’s Policy Anniversary

John purchased a long-term care insurance policy and included the Paid-Up Premiums Rider. On the policy anniversary after his 65th birthday, John’s premiums were waived, and his policy became paid up. He no longer had to make any premium payments, but his policy remained in effect.

Case Study 2: Mary’s Effective Date

Mary added the Paid-Up Premiums Rider to her long-term care insurance policy. The rider took effect on the specific rider effective date mentioned in her policy. From that date onward, if she met the conditions, her policy would become paid up at a later date.

Case Study 3: Premium Conditions

Sam purchased a long-term care insurance policy with the Paid-Up Premiums Rider. He noticed that the premium for this rider was higher than the premium for the base coverage under the policy. Sam had to consider whether he wanted this coverage, taking into account his age and expected benefit eligibility timeline.