What is a potential impact of a long-term care benefit rider on a life insurance policy?

A long-term care benefit rider is designed to provide policyholders with access to funds that can be used for long-term care expenses while they are still living. This rider can have a significant impact on the death benefit of the life insurance policy. When a policyholder uses the benefits of the long-term care rider, the amount withdrawn or used for long-term care can diminish the overall death benefit that will be paid out to beneficiaries upon the insured's death.

Therefore, if a policyholder accesses funds for long-term care, it directly reduces the remaining amount of the death benefit that will be left to beneficiaries, aligning with the correct answer. The policy is structured this way to allow for flexibility and support in care needs while also recognizing that the total life insurance payout will be affected by any benefits drawn during the insured's lifetime.

In contrast, factors like increased cash value, higher premiums in perpetuity, or extended payment periods do not typically reflect the direct implications of utilizing long-term care benefits within a life insurance policy context.