Living Benefits
There are additional benefits associated with our life Insurance and annuity solutions provided by optional riders. We call them Living Benefits, and we have been providing them since 1937. Based on the product, living benefits can provide benefits should a qualifying terminal, chronic or critical illness or critical injury occur, 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.
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.
This information is not intended as tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor. The ability of a life insurance contract to accumulate sufficient cash value to meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed. Policy loans and withdrawals reduce the Cash value and face amount of the death benefit.
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What qualifies? Generally, if you have been diagnosed with a terminal illness that will result in death within 24 months of certification of the illness by a physician. Receiving your benefit The benefit payment will be a lump sum. There is no waiting period or annual benefit limit, but there is a lifetime limit on the amount of benefits you can receive across all Accelerated Benefits Riders. Here if you need it You can elect to either:
What qualifies? A doctor has certified, within the past 12 months, that you are unable to perform two out of six “activities of daily living” for a period of at least 90 consecutive days without assistance, or that you are cognitively impaired. Activities of Daily Living
Receiving your benefit Generally, the rider needs to be in force for a period of two years. There is an annual limit on the amount of benefits you can receive. There is also a lifetime limit on the amount of benefits you can receive across all Accelerated Benefits Riders. Here if you need it Note that you do not have to be in a licensed facility to receive payments, and that you can apply for benefits every 12 months. Benefits can be used for any reason (with 1 state exception), and do not need to be used for medical expenses. If you should need it, and you qualify, after the waiting period you can:
What qualifies? Critical Illness includes:
Critical Injury includes:
Receiving your benefit The discounted benefit you receive for the critical illness or critical injury rider takes into consideration four different categories dependent on the severity of the illness:
The highest payout will result from the Life Threatening category. Generally, the rider needs to be in force for 30 days prior to diagnosis in order to accelerate. There is no annual limit, but there is a lifetime limit on the amount of benefits you can receive from all Accelerated Benefits Riders. Here if you need it You can elect to either:
Do you have the type of life insurance you don’t have to die to use? Is there an expiration on your life insurance coverage? Does your current policy reflect what you currently need to protect, or was it designed around your budget when you bought it? Do you know anyone who has survived a heart attack or cancer? How did it affect them financially? What is your financial plan if you seriously ill or injured? Does your current policy offer you any benefits if you become seriously ill or injured? How are you planning for retirement? What portion of your retirement income is guaranteed? Do you have a safety net in case your retirement income falls short of your expenses?
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