Long Term Care Policy Riders: Paid Up Premiums

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jan 28, 2009

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Paid-Up Premiums Rider

The provisions in the sample long term care insurance policy clearly state the specific conditions under which benefits will not be paid. Most policies contain provisions similar to those outlined below.


This Rider provides for Your Policy to be Paid-Up at the later of the Policy Anniversary on or after Your 65th birthday or the tenth (10th) Policy Anniversary.

This Rider is part of the Policy to which it is attached if it is referred to on the Schedule of Benefits page of the Policy.

Premiums Paid-Up to Age 65

Once Your premiums have been paid to the later of the Policy Anniversary on or after your 65th birthday or the tenth (10th) Policy Anniversary, Your policy will be Paid-Up.

“Paid-Up” means no further premiums are payable, but the Policy remains in effect.

Any premium increase which results from a change in benefits under the terms of this Policy will be treated separately for purposes of this Rider. Each premium increase will not be Paid-Up until the later of the Policy Anniversary on or after Your 65th birthday or ten (10) years from the effective date of the change.

Effective Date of This Rider

This Rider takes effect on the Rider Effective Date shown below.

Termination of This Rider

This Rider will end on the earlier of:

  1. the last day of the Policy Month in which We receive Your written request to end this Rider. In this case, You must return the Policy to Us. We will change the Policy and return it to You; or
  2. the date on which the Policy ends; or
  3. the date nonforfeiture coverage becomes effective under the Policy.

Premium for This Rider

The premium for this Rider is shown in the Premium Schedule on the Schedule of Benefits page of this Policy. The same conditions that apply to the premium for the Policy will apply to the premium for this Rider.

Tax Note

Premiums paid in this manner may be treated differently than premiums paid under other premium payment methods for tax purposes. Consult your tax advisor for further information.

In all other respects, the provisions and conditions of the Policy remain the same. This rider is subject to the provisions of the Policy which are consistent with this Rider.

Rider Effective Date: 00/00/00

COMMENT: This is a very simple, uncomplicated benefit. If you have this rider attached to your policy, you don’t have to pay any more premiums on the policy after the later of your (a) 65th birthday or (b) ten years after the effective date of your policy coverage. This can be a very valuable benefit. Because it is so valuable it can also be expensive. Oftentimes the premium for this benefit can be more than the premium for the base coverage under the policy.

need to think about whether you want this coverage. If you bought your policy at a relatively young age, this might make some sense because you may be paying premium on the policy for many years before you begin to receive any benefits. So it might be worth it to have those premiums waived. On the other hand, if you buy the policy when you are older or when your health is already declining and you expect to be receiving Benefits within a short period of time, then you should probably not purchase this rider because once you are eligible for Benefits your premiums are waived.

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