SERVICES / LIFE INSURANCE FEATURES
Protection that may help
when life takes a turn.
Life insurance can do more than help after a death. Certain policies include riders that may allow access to part of the death benefit during the insured person’s lifetime after a qualifying illness or event.
Living benefits often refer to accelerated death benefit riders. Eligibility is based on the exact definitions in the policy, not simply on receiving a diagnosis. These features are not a substitute for comprehensive health insurance or a long-term care policy.
01
Typically requires medical certification of a life expectancy within the period specified by the rider. The required prognosis, evidence and benefit limits vary by policy and state. A diagnosis alone does not establish eligibility.
02
May require certification of an inability to perform specified activities of daily living or a qualifying cognitive impairment. Duration, permanence, recertification and payment conditions depend on the rider. These benefits are not automatically equivalent to long-term care insurance.
03
May cover specified serious events, such as a qualifying heart attack, stroke or cancer, only when the rider’s definitions and severity requirements are met. Covered conditions, waiting periods and exclusions differ; not every diagnosis qualifies.
MAKE AN INFORMED CHOICE
Confirm which riders are actually included, then compare the precise trigger, waiting period, maximum acceleration, medical evidence and payment calculation. Discounts or charges may mean the payment is less than the death benefit accelerated. Request the actual policy and rider; a general comparison cannot determine a claim.
Taking an accelerated benefit generally reduces the remaining death benefit and may affect cash value, other benefits, taxes or eligibility for public assistance. Review the insurer’s benefit illustration and discuss tax and public-benefit implications with qualified professionals before electing payment.
THE POWER OF CHOICE
Examples of companies offering relevant insurance options. DMD can help you explore which products are available for your needs and state.
Information about accelerated benefits available on eligible life policies.
Term life options that may include eligible living benefit features.
Term life coverage with available illness-related rider options.
Product availability, underwriting, benefits, guarantees and riders vary by insurer and state. Logos identify their respective companies and do not guarantee eligibility, approval or a particular product’s availability through DMD.
No. The rider must be available and included in your contract. Coverage, definitions and state availability differ.
Not always. The insurer must determine that the rider’s specific requirements are met. Medical evidence, waiting periods or other conditions may apply.
No. Accelerated death benefit riders and long-term care insurance can have different triggers, benefits and tax treatment. Compare them separately.
Some riders allow flexibility in how proceeds are used, but requirements vary. Confirm permitted uses and any limitations in your contract.
FOR DMD AGENTS
Discuss the death benefit first, then explain eligible rider features. Compare actual definitions and claim requirements. Never promise a payment based solely on a diagnosis or describe accelerated proceeds as an extra benefit with no effect on the policy.
Let’s talk about the people and plans you want to protect. Our team can help you understand your choices and take the next step with confidence.
This page provides general educational information, not a quote or a coverage recommendation. Insurance coverage is subject to the issued policy’s terms, exclusions, limitations and payment of required premiums.
LEARN MORE: Alabama insurance department: accelerated benefits ↗ / National Life Group living benefits ↗ / New York Life rider explanation ↗