Accelerated Benefit "High Profile," "The Cadillac Plan.
Fourteen participants currently offer a chronic illness
accelerated benefit rider on either a UL or IUL chassis.
However, I have found that serving the needs of the surviving spouse provides tremendous peace of mind for my clients, and by using
accelerated benefit riders I can help supplement long-term care needs as well.
The concept is simple: those who need to access policy benefits to cover costs of care for a condition such as Alzheimer's can use the
accelerated benefit feature to do so.
NWL Living Benefit Term provides life insurance protection in the event of death, plus provides an
accelerated benefit for protection from unexpected events that may adversely affect a client's life expectancy.
If long-term care is needed, an
accelerated benefit rider can be used to access the initial premium deposit.
In some cases, the full benefit is more valuable to a surviving spouse than the
accelerated benefit.
Taking an
accelerated benefit from a life insurance policy is one way.
If ADBs are treated as proceeds from a life insurance contract, the first problem arises because, until recently, the IRS has taken the unofficial position that
accelerated benefit payments not attributable to death should be taxed under Sec.
Goulet noted that plans that would otherwise fall below key funding thresholds will now have more time to improve the funding levels and avoid restrictions on their ability to pay some
accelerated benefit forms, such as lump sums.
According to the Company, Elite Index II is an economical universal life insurance cover with simplified guarantees, an option of chronic illness
accelerated benefit rider, increased cap rate of 13%, and higher participation rate of 70%, which is a better option in a well-performing market.
The second example I would like to bring forward is a first-to-die life insurance policy that has an
accelerated benefit that pays for long term care costs.
