What is a residual death benefit?

The minimum death benefit to be paid

Most life insurance policies with an LTC rider have what is called a residual death benefit. This is the minimum death benefit to be paid, even if an amount equal to or greater than the death benefit is paid in LTC claims.

It is a set percentage of the original death benefit and is frequently equal to 10%.

Example: The policy has a death benefit of $150,000, a residual death benefit equal to 10% and at least $150,000 have been paid in LTC claims. The residual death benefit is $15,000.