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Life Insurance with Chronical,Terminal Illness,& Longevity Income

1. Chronical Illness Protection Rider

Think life insurance only pays out to your loved ones when you die? Not anymore. Access your own life insurance benefits while living. With Chronic Illness rider to a select life insurance policy, you can access your income tax-free life insurance benefits, if diagnosed with a chronic illness. Should an eligible chronic illness occur, you can be paid monthly benefits until that illness improves or your rider benefit is exhausted - whichever happens first. It's a good option for consumers who understand the value and security of combining death benefit and chronic illness protection into one. Multiple benefit options are available:

  • 2% of the rider benefit per month
  • 4% of the rider benefit per month
  • IRS maximum per diem amount at the time claim begins (the 2016 rate is $340/day, which equates to $10,341.66/month for a thirty day month)

Flexible options with total rider benefit amount. Select any amount between 50-100% of the base policy life insurance benefit amount. Other benefits include:

  • Control how your own claim money is spent - money goes directly into your pocket, not the health provider or care facility
  • Not a typical "use it or lose it" long-term care policy - benefits are paid no matter what..either to the insured if they become chonically ill, or to your beneficiaries at the time of your death.
  • No receipts required - you don't need to show or tell us how you spend your money.
  • Monthly deductions will be waived for as long as the policy owner meets the chronic illness requirements.
  • At death, any remaining life insurance benefit will be paid to the policy owner.

Becoming eligible

To activate the rider, an insured person must be certified by a licensed health care practicioner to be considered a "chronically ill person." One of the following health impairment criteria must be met for a period of at least 90 consecutive days:

  • 1. The insured is unable to perform, without substantial assistance from another person, at least two of the Activities of Daily Living (ADLs):
    • - Bathing       - Eating
    • - Continence  - Toileting
    • - Dressing      - Transferring
  • 2. The insured requires substantial supervision from threats to health and safety due to a severe cognitive impairment (similar to Alzheimer's and other forms of irreversible dementia) that is measured by clinical evidence and stansardized tests measuring:
    • - Short-term or long-term memory
    • - Orientation as to people, places or time, and
    • - Deductive or abstract reasoning
  • Once all criteria are met, monthly benefits may begin.

2. Terminal Illness Protection Rider

This rider provides advance access to a qualified portion of the Death Benefit if you become terminally ill with a limited life expectancy. There is no charge unless you elect a benefit; you will then be charged a one-time administrative fee, and a lien will be placed against future policy benefits that will be deducted upon the final Death Benefit payment.

3. Longevity Income Rider

The Longevity Income is an optional rider that helps to protect you against outliving your retirement income (reaching age 85), enabling you to translate your death benefit into a stream of supplemental income. LIS provides you with access to your death benefit in monthly payments when the following requirements are met:

  • Your policy and rider have been in effect for at least 15 years, and
  • The amount of policy premiums paid prior to the initial election date are sufficient to guarantee death benefits until you reach age 100 (without regard to any waiver benefit under the policy)

If you are interested in this type of policy click on the Contact us link above.

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