Accelerated Death Benefit Riders
Here is another great reason to own life insurance. Yes, life insurance is a guaranteed tax free benefit to the insured beneficiaries, typically family members, upon the passing of the insured. However, Life Insurance can help the insured in other ways. The treatment of an illness leading to the insured’s death, often causes extreme financial burdens in the form of medical expenses. Fortunately many new individually owned life policies typically have, free of charge, an “Accelerated Death Benefit” rider built into the contract. The Accelerated Death Benefit allows the insured access to funds in order help pay medical expenses, or simply use the benefit with family members while the insured is still alive, final dream family vacation maybe….
Living Benefits of Life Insurance
The Accelerated Death Benefits Rider allows the owner to obtain a portion of the death benefit if the Insured is terminally ill and is certified by a physician to have 12 months or less to live. The maximum payment will be up to 75% of the original death benefit. Any death benefit remaining will be paid to the beneficiary upon death of the insured.
Illinois Mutual Life Insurance Company now offers a second free of charge living benefit call LifeAid on their Whole Life policies. This allows the insured access to funds if you become Chronically Ill. LifeAid accelerated benefits are available if a licensed physician certifies that you are permanently unable to perform two or more activities of daily living for a period of 90 consecutive days due to the loss of functional or cognitive impairment. These activities of daily living include:
Bathing
Dressing
Toileting
Continence
Eating
Transferring
Simply stated, LifeAid grants access to funds to help pay for the high cost of long term care needs associated with a Chronic Illness. The most common chronic illnesses include conditions of ALS, rheumatoid arthritis, dementia, chronic obstructive pulmonary disease, cancer, heart disease, obesity, and osteoporosis.
If you want a review of your currently life policy to determine if these benefits are part of your current life contract or would like to have this accelerated living benefit as part of your life coverage please give us a call for a personal appointment.