These are generally known as "accelerated death benefits
." They make it possible to pay critical illness and long-term care costs without forcing your client to sell other assets.
To address this concern, several no-lapse guarantee life insurance products also offer additional flexibility through access to cash value in early years, return of premium or accelerated death benefits
Phoenix Safe Harbor Term Life covers riders, which can provide accelerated death benefits
in the case of chronic illness, critical illness or terminal illness, and a waiver of premium in the case of unemployment.
Are you having conversations about adding long-term care riders or accelerated death benefits
to life policies?
A popular feature of life insurance today is accelerated death benefits
or living benefits.
However, if the insured borrows or withdraws the cash value or uses any of the accelerated death benefits
(that most plans offer) those amounts will be deducted from the final death benefit.
2968 would eliminate the required reduction in the amount of accelerated death benefits
payable to certain terminally-ill people insured under Servicemembers' Group Life Insurance or Veterans' Group Life Insurance.
"Like the introduction of accelerated death benefits
in the 1980's, this develop seems to offer an important and attractive option to certain policyholders who would want or need to access part of their death benefit," ACLI said.
One alternative to the purchase of a long-term care insurance policy is the accelerated death benefits
that may be available from a life insurance policy.
He or she should "take advantage of competitive forces and the free market to obtain the highest payment for the life insurance contract." (21) The general rule is that accelerated death benefits
provide a higher payout than viatical settlements but typically impose a great number of restrictions on medical conditions.
Biders such as accelerated death benefits
allow terminally or chronically ill policyholders to get cash value out faster.
Accelerated death benefits
paid to terminally ill individuals are not subject to this limit.