Long-Term Care Riders Inside an ILIT

In recent years, some insurers have begun to offer long term care insurance (LTCII) coverage in the form of riders to life insurance policies. These riders are often referred to as "living benefit" or "living needs" riders. The LTCI benefits offered under these riders are similar to those found in an LTCI policy. The benefits may be defined as a specific daily amount or as a percentage of the face amount of the policy (up to a specified maximum). Under an "independent" program, the LTCI rider will not affect the policy's death benefit (or cash value), but in an "integrated" program, any LTCI rider benefits paid will result in a reduction of these values.

Long-Term Care Riders Inside an ILIT
Source: Producers Web