Rhode Island Life Insurance Practice Exam

A long-term care rider in a life insurance policy provides benefits in the event of what scenario?

1. Hospitalization of the insured

2. Inability to perform more than 2 Activities of Daily Living (ADLs)

3. Loss of employment

4. Critical illness diagnosis

The correct answer is: Inability to perform more than 2 Activities of Daily Living (ADLs)

The long-term care rider in a life insurance policy is designed to provide benefits specifically for scenarios where the insured is unable to perform a specified number of Activities of Daily Living (ADLs). ADLs commonly include essential self-care tasks such as bathing, dressing, eating, toileting, transferring, and continence. When an individual is unable to perform two or more of these activities due to a medical condition or disability, the long-term care rider activates, supplying funds that can be used to cover related care expenses, such as nursing home care, assisted living, or home health care. This rider is particularly valuable as it helps address the financial burden associated with prolonged care needs, which typically arise in older age or due to chronic illnesses. The benefits provided through this rider are crucial for individuals relying on assistance with daily routines, thereby contributing to maintaining their quality of life. The other choices do not align with the purpose of a long-term care rider. Hospitalization, loss of employment, and critical illness diagnosis are scenarios that are managed under different insurance provisions or riders and do not specifically relate to long-term care assistance.