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UL Rider Accelerates For LTC

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Three universal life policies are now offering an accelerated benefit rider that advances a portion of the death benefit to cover the insured’s qualified long term care expenses.

The issuing companies — RiverSource Life Insurance Company, Minneapolis, and, in New York, RiverSource Life Insurance Company of New York, Albany, N.Y. — are both affiliates of Ameriprise Financial Services Inc., Minneapolis.

Called AdvanceSource, the rider is optional and available for an extra cost on new single life sales.

The ultimate death benefit is reduced by any benefits used to cover qualified LTC expenses during the policyholder’s life, the insurers say.

If no chronic care coverage is needed, the entire life insurance death benefit remains intact, the companies say.

The rider is not considered LTC insurance in some states, does not qualify for state LTC partnership programs, and is not a Medicare supplement policy, the companies note.

The RiverSource companies will sell the rider through Ameriprise personal advisors.