Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
What is the purpose of a long-term care (LTC) rider attached to an annuity contract?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An LTC rider on an annuity lets the owner access the contract's value to help pay for qualified long-term care services, often by accelerating benefits or providing a multiplier on the account value for care expenses. This hybrid design couples annuity accumulation with long-term care protection. California law also requires agents to complete LTC training and to explain how accelerated-death and LTC benefits differ from standalone LTC insurance.
Why the other options are wrong
- B) The LTC rider funds care, it does not substitute a life insurance death benefit for the annuity's structure.
- C) The rider is a care-spending feature, not a premium-refund guarantee.
- D) LTC riders are not Medicare supplement products; Medigap policies are governed by separate federal standardized plans.
Memory hook
LTC rider = annuity money with a care-spending valve. Save, then use it for care if life demands it.