Life insurance accelerated death benefit riders

By Mortgage Protection and Insurance Services Inc.

Mortgage Protection & Insurance Services, Inc.


Most people purchase life insurance to provide a legacy of financial security at the time of their death.; But doesn’t it make sense for the benefits to extend and be available for the difficult financial times they have to face if a chronic, critical or terminal illness precedes death?

The industry calls the benefit an accelerated death benefit rider. We refer to it as real living benefits.

Most of us are in this profession because of a sincere desire to help others in a manner that is both unique and timely. Living benefits is one of the reasons why we are so passionate about what we do every day.

Consider the following scenario. An insured has purchased a universal life or term insurance policy. Months or years later, a chronic, critical or terminal illness occurs. Money is needed due to the necessity for special care or expensive alternative treatment not covered by their health insurance; or to replace the income of the insured or the family member who volunteers to stay home as caregiver; or perhaps to just fulfill the insured’s living wish before the end of life.
 
In real life, families want to provide for the needs of the grandparent, parent or child who became ill now, and not wait for the legacy of an insurance death benefit. Combined with the tax advantages of a life insurance contract, if this living benefit feature was better known more people would buy life insurance for the living benefits than just the death benefit.

Some insurance carriers offer living benefits in the terms of an accelerated death benefit rider and charge an additional premium for it. Do you know which insurance carriers include the living benefits rider at no additional premium cost to the insured, with no separate underwriting requirements? We do.