Living Benefits Plans
There are additional benefits associated with our life Insurance and annuity solutions provided by optional riders. We call them Living Benefits. Based on the product, living benefits can provide benefits should a qualifying terminal, chronic or critical illness or critical injury occur(1), or if your desire is to have an income that you cannot outlive.
The best way to understand the impact living benefits can have is to hear from policy owners who have actually used them.
The Living Benefits allow you to receive a portion of the death benefit under the policy, during your lifetime, upon submission of required documentation regarding a qualifying event. The death benefit that you elect to accelerate will be paid at a discounted amount because it is being paid prior to the actual time of death.
Benefits may be subject to taxation and may impact eligibility for Medicaid or other public assistance programs. Consult your legal and tax advisor for more information and refer to the rider for qualifications, limitations and fees.
The owner should consult a competent tax advisor to determine the current tax consequences before requesting any accelerated death benefits.
This rider is not intended to be a health contract, qualified long term care insurance contract under section 7702B(b) of the Internal Revenue Code or a non-qualified long term care insurance contract.
An accelerated death benefit such as the Chronic Illness Accelerated Benefit Rider and long-term care insurance provide very different kinds of benefits:
Generally, an accelerated death benefit is a rider to or other provision in a life insurance policy that permits the policy owner to accelerate some or potentially all of the death benefit of a life insurance policy if the insured meets the definition of having a chronic illness as defined in the rider or policy provision. Acceleration of death benefits and payments under such an accelerated death benefit will reduce the death benefit of the policy and reduce other policy values as well, potentially to zero. If the entirety of the insurance amount is accelerated, the policy terminates.
A Long Term Care insurance policy is any insurance policy, certificate, or rider providing coverage for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services that are provided in a setting other than an acute care unit of a hospital. Long-term care insurance includes all products containing any of the following benefit types: coverage for institutional care including care in a nursing home, convalescent facility, extended care facility, custodial care facility, skilled nursing facility, or personal care home; home care coverage including home health care, personal care, homemaker services, hospice, or respite care; or community-based coverage including adult day care, hospice, or respite care. Long-term care insurance includes disability based long-term care policies but does not include insurance designed primarily to provide Medicare supplement or major medical expense coverage.
The Critical Illness Accelerated Benefit Rider provides you access to your policy’s death benefit if you have a qualifying critical illness
The Chronic Illness Accelerated Death Benefit Rider provides you access to your policy’s death benefit if you have a qualifying chronic illness.
The Terminal Illness Accelerated Benefit Rider provides you access to your policy’s death benefit if you are terminally ill.
(1) Living Benefits may be provided by optional Accelerated Benefits Riders. Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event and may affect your eligibility for public assistance programs. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you.