For an additional premium, a rider can be added to a life insurance policy that makes some of the cash value available to pay for long-term care expenses. This is known as?

The correct answer is that a rider can be added to a life insurance policy, which makes some of the cash value accessible for long-term care expenses, known as an accelerated benefits rider. This rider allows policyholders to access a portion of their death benefit while they are still alive, specifically to cover costs associated with long-term care needs.

This feature is particularly valuable for individuals concerned about potential healthcare costs in their later years, as it provides a means to utilize the policy’s cash value in a way that can alleviate financial pressure from long-term care expenses. The accelerated benefits rider essentially shifts the purpose of the life insurance policy from solely providing a death benefit to also being a financial resource for living benefits, thereby enhancing the policy's functionality.

In contrast, other options do not accurately describe this feature. Institutionalization rider and health care rider are not standard terms recognized in most life insurance contexts, and additional coverage rider is too vague and does not specifically refer to the access of funds for long-term care. Understanding the specific nature of different riders ensures that policyholders can make informed decisions regarding their coverage and financial planning.