Ace the Long Term Care Exam 2025 – Elevate Your Compassionate Career!

When a long-term care rider attached to an annuity is activated due to a chronic illness, the amount of long-term care benefits paid typically reduces the value of the annuity. This is because the benefits disbursed for long-term care are drawn from the overall value of the annuity. Essentially, the rider allows the annuity owner to access a portion of their benefits to cover long-term care expenses, which means that the remaining balance in the annuity will be decreased accordingly by the amount of funds allocated for those care benefits.

This reflects a fundamental concept within insurance and financial products: when benefits are paid out, they usually diminish the total value remaining in the account or policy. In this instance, it is a necessary adjustment in preserving the finances meant for long-term care needs while ensuring the annuity remains a viable source of income or support for the individual in the future.