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How living benefits can help in case of chronic, terminal or critical illness

Life insurance can protect your loved ones after your death and bring benefits during your lifetime. With a living benefits rider – also known as an accelerated death benefit rider – your indexed universal life policy can help protect you financially in the event of a qualifying chronic1,3, terminal1,3 or critical1,2,3 illness. This may include:

  • Heart disease
  • Cancer
  • Chronic lung disease
  • Stroke
  • Alzheimer’s disease
  • Diabetes
  • Chronic kidney disease

Let’s look at how some life insurance policyholders used their living benefits riders for financial benefit during their lifetimes.

Chronic illness: Robert’s story

Robert was a trivia buff. The first signs that something was wrong came when he found himself struggling to come up with answers at his weekly trivia night, and his family convinced him to see a doctor.

It turns out that Robert was one of many Americans diagnosed with Alzheimer’s each year. Alzheimer’s treatment to manage symptoms and slow the disease’s progression can be costly.

Robert had purchased an indexed universal life (IUL) policy with a living benefits rider for chronic illness a few years back. After talking it over with his family, Robert used his chronic illness rider to tap into his death benefit early. The funds helped the family pay for treatments that enhanced his quality of life and allowed him to contribute to many more trivia night victories.

Terminal illness: Mary’s story

Nothing brought Mary more joy than her family and her grandchildren. She’d built a life centered around family and cherished every moment.

At 50, Mary purchased an IUL policy that included a living benefits rider for terminal illness. At age 70 she received some bad medical news – she was diagnosed with a terminal illness. Her doctors told her she had a life expectancy of 24 months or less.1

To make the most of her remaining time, Mary chose to use a portion of her death benefit early through the terminal illness rider. Because her life expectancy was under 24 months, she could access up to 100% of her death benefit immediately. This offered Mary the financial flexibility to focus on spending valuable time with her family.

Critical illness: Jeffrey’s story

With two children in college – and counting down the years to retirement – Jeffrey and his wife were watching their budget closely. Among other retirement investments, Jeffrey had an IUL policy that included a critical illness rider.

When he was diagnosed with invasive cancer at 52, Jeffrey was shocked. Suddenly his family faced significant medical expenses they hadn’t expected.

Jeffrey chose to exercise part of his death benefit through the critical illness rider on his life insurance policy. This allowed him to use a portion of his death benefit early, providing much-needed funds to help cover expenses during treatment and maintain his family’s quality of life.

Be ready for the unexpected with living benefits

As we all know, life can bring unexpected challenges. Preparing with a living benefit rider on your IUL policy can help provide you with financial support when you need it most. When faced with navigating critical, chronic and terminal illnesses, these benefits can act as a safety net during difficult times.

Talk with a financial or insurance professional to see if an IUL with living benefits can help with your financial preparedness plan.

2For the critical illness rider, a covered illness must first occur on or after the effective date of the rider. If you choose to accelerate the critical illness rider, both the terminal illness and chronic illness riders terminate.

3The rider is not available when the insured life is rated higher than table 4 or if there is a flat extra rating per $1,000.

“F&G” is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

Surrender charges begin when the contract is issued and decline over 15 years to zero. If you increase your coverage, a new 15-year surrender charge period applies based on the amount of the increase in coverage.

Policy form numbers: 16-LRI-1114, 17-LRI-1115, ICC16-LRI-1114, ICC17-LRI-1115.

Information provided regarding tax or estate planning should not be considered tax or legal advice. Consult your own tax professional or attorney regarding your unique situation.

Issuance may be dependent on answers to the health questions on the application.

Subject to state availability. Certain restrictions may apply. Optional provisions and riders have limitations, restrictions and additional charges.

Surrenders, withdrawals and loans will reduce available death benefit and may be subject to surrender charges. Surrenders and withdrawals beyond basis may be taxable income and subject to penalties if taken prior to age 59 ½. Excessive and unpaid loans will reduce policy values and may cause the policy to lapse. In order to receive favorable tax treatments on distributions made during the lifetime of the insured (including loans), a life insurance policy must satisfy a 7-pay premium limitation during the first seven policy years. A new 7-year limitation will be imposed after certain policy changes. Failure to satisfy this limitation would cause the policy to be considered a Modified Endowment Contract (MEC).

This document is not a legal contract. For the exact terms and conditions, please refer to the contract.

The examples are hypothetical, non-guaranteed and are not an indication of the policy's and/or interest crediting option's past or future performance.