Under a long-term care rider, what benefit can an insured potentially access?

A long-term care rider is an important feature that can be added to certain life insurance policies, allowing the policyholder access to benefits while they are still living, specifically for long-term care costs. When a policyholder requires assistance with daily activities due to illness, injury, or cognitive impairment, they can tap into the funds that have been designated for this purpose through the rider.

By accessing these benefits, the insured can utilize a portion of the life insurance policy's death benefit or specified rider benefits to cover long-term care expenses. Typically, long-term care riders allow for increased coverage limits specifically for care-related costs, thereby ensuring that individuals have financial support when they need it most. By having access to increased limits for long-term care expenses, policyholders have greater flexibility and security regarding their health care decisions as they age.

In this context, options such as higher dividend payouts, tax-free cash withdrawals, and regular refund options are generally not associated with the function of a long-term care rider. Instead, these options are typical of different types of insurance products or investment accounts, showing why the specific benefit of increased coverage limits for long-term care costs is the most accurate answer.