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.
