Term Life with Living Benefits
What are Living Benefits?
Living Benefits on a Term Life Insurance policy is a rider that is already built into the policy. It protects the policyholder in the event they are diagnosed with a chronic, critical, or terminal illness. This benefit can be accelerated to make life a little easier with financial obligations. Most people buy it for a layer of financial protection. The money accelerated just comes off of the face amount of the policy. Most people choose to access certain amounts depending on their financial status at the time.
How do Living Benefits work?
Term Life with living benefits offers a death benefit protection, up to $2 million, but also provides living benefits. These living benefits provide the option to receive an accelerated death benefit in the event of a qualifying chronic, critical, or terminal illness, while the insured is alive. This policy is a layer of protection that could keep you from exhausting all your financial resources. Money when you need it the most. Financial security for your home and other debts.
Examples of Living Benefits
If during your term life insurance policy years you are diagnosed with a certain chronic, critical or terminal illness, this type of policy will allow you to accelerate a portion of your policy’s death benefit amount.
Chronic Illness – Allows the insured to receive up to a maximum of 24% of the policy’s death benefit (per year) should the insured be determined by a licensed physician to be unable to perform two of the six daily living (bathing, continence, dressing, eating, toileting, and transferring) for a period of 90 consecutive days.
The maximum amount that can be received over the lifetime of the insured is 90% of the death benefit amount not to exceed $1,500,000 of the original death benefit.
Critical Illness – Allows the insured to receive up to 90% of the death benefit in advance should the insured be determined by a licensed physician to have suffered a critical health condition such as cancer, heart attack, stroke, a major organ transplant, end-stage renal failure, Amyotrophic Lateral Sclerosis (ALS), blindness, or paralysis due to loss of two or more limbs.
The maximum amount that can be received is the lesser of 90% of the death benefit amount of the face amount of the policy or $500,000.
Terminal Illness – Allows the insured to receive a portion of the policy’s death benefit as a lump sum payment in advance of death when a licensed physician has diagnosed the insured to have less than 12 months to live.
The maximum amount that can be received is 100% of the death benefit to a maximum of $1,500,000.