Understanding a Chronic Illness Rider

April 21, 2020

chronic illness rider couple

Tap into your universal life insurance benefits while you’re still living

What if you could unlock the value of your life insurance before you die? With a chronic illness rider, that may be possible.

If you develop a chronic illness, you may be able to tap into your Prestige Universal Life insurance benefits while you’re still living. A chronic illness rider allows you to customize your Prestige Universal Life policy and unlock the value of your policy if you become chronically ill. This rider can help you by accelerating, or making available, your death benefit while you’re still alive. You can use this money for yourself in any way you want, like paying for home health.

How do I qualify?
If you are unable to perform two of these six Activities of Daily Living (ALSs), you may qualify. The ADL health triggers must be: (1) certified by a qualified health care provider; (2) present for at least 90 days; and (3) expected to be permanent.

Health Triggers:

1. Bathing– the ability to clean oneself and perform grooming activities like shaving and brushing teeth
2. Dressing– the ability to get dressed by oneself without struggling with buttons and zippers
3. Eating– the ability to feed oneself
4. Transferring– the ability to either walk or move oneself from a bed to a wheelchair and back again
5. Toileting– the ability to get on and off the toilet
6. Continence– the ability to control one’s bladder and bowel functions
    or
    Severe Cognitive Disorder

Is there a premium?
Yes, the cost of the rider depends on your age at the time you apply, but premiums are pennies on the dollar for the return.

Can this be added to my existing policy?
The Chronic Illness Rider is for the main insured person on a Prestige Universal Life policy. The rider can only be added at the time you apply for the Prestige UL policy or at the time you are eligible to convert your policy.

What is Prestige Universal Life?
Universal life is a flexible form of insurance that can last your lifetime and can also increase in cash value over time. Flexibility means that you can change different aspects of the policy—the size of the premiums, whether the death benefit increases with time or stays level, adding a chronic illness rider—which allows you to change your coverage as your needs change.

Another important feature of universal life is that it has the ability to increase in cash value, depending on how it is funded. The cash value account earns interest and the taxes are deferred (paid at a later date). With so many products and coverage options, universal life insurance can easily be included in a budget of any size.

Talk to your agent today about the Prestige Universal Life chronic illness rider to take advantage of this financial benefit!

 

 

Posted in Life