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Living Benefits
Living benefits are additional features that can be added to a life insurance policy. These benefits provide financial protection to the policyholder in the event of a serious illness or injury. There are different types of living benefits that can be added to a life insurance policy:
Terminal
If an eligible insured has an illness or condition that is expected to result in death within 24 months or less.
Chronic
If an eligible insured is unable to perform 2 of 6 activities of daily living for a period of at least 90 days or requires constant supervision to protect from threats to health or safety due to severe cognitive impairment.
The ADLs include bathing, continence, dressing, eating, toileting, and transferring.
Critical Illness
Covered critical illnesses may include:
- Heart Attack
- Stroke
- Invasive Cancer
- End-Stage Renal Failure
- Major Organ Transplant
- ALS
- Blindness
- Paralysis
- Arterial Aneurysms
- Central Nervous System Tumors
- Major Multi-System Trauma (Major injury to three or more organs or systems) Not Available in CA
- AIDS – Not Available in CA
- Severe Disease of Any Organ (resulting in a significantly altered life expectancy)
- Severe Central Nervous System Disease (Parkinson’s, Huntington’s, Multiple Sclerosis, Encephalitis with long-term effects) – Not Available in California
- Major Burns (>40% BSA, 3rd Degree)
- Loss of Limbs
Long Term Care Rider
Qualified Long-Term Care Services covered by the rider will include*:
- Informal home care
- Formal home care
- Assisted living care
- Adult daycare
- Facility care includes nursing home care
- Other qualified service providers
This rider provides monthly benefits for qualified Long-Term Care services upon approval of a claim. Eligibility requirements include certification that the Insured is chronically ill, a plan of care for qualified LTC services, and a 90 calendar day elimination period must be met. Chronically ill means, the insured has been certified, within the preceding twelve months, by a licensed health care practitioner other than the owner or employee of an LTC service provider or immediate family of the policy owner or Insured
(Nationwide Financial Permenant Products)
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless the client has a need for life insurance. Accelerated Benefit Riders are optional and may not be available in all states or on all products. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. State exceptions, limitations and restrictions may apply to riders, benefits and triggers. Refer to the specimen policy forms for the limitations on these benefits. National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest, Addison, TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.
Author: Cameron Greenlaw
Broker