For years, life insurance was seen as an unpleasant topic, because the person paying the premiums generally derived no financial benefit from the policy. He had to die before a benefit would be paid. Today, however, insurance companies are offering policies that pay living benefits. While the primary purpose of life insurance remains safeguarding your family’s financial security in the event of your death, there are now policies that you can use while you are living.
RMC believes that you need to protect your family not only against your premature death, but also against the risk of suffering a debilitating illness or sustaining a critical injury. RMC works with a number of A-rated insurance companies that offer policies with living benefits at no additional cost that can help protect against the financial risk of a terminal, chronic or critical illness, as well as a critical injury. These living benefits are provided through an Accelerated Benefit Rider that enables you to receive a portion of the policy’s death benefit while you are still living.
A policy with an Accelerated Benefit Rider protects you and your family in the event of a terminal illness. The Rider enables you to accelerate the death benefit if you have been diagnosed with a terminal illness that is expected to result in death within 24 months. In order to access this living benefit, the terminal illness must be certified by a physician.
A policy with an Accelerated Benefit Rider may also accelerate the death benefit in the event of a chronic illness. In order to take advantage of this living benefit, a licensed healthcare practitioner must certify that the insured is unable to perform at least 2 of the 6 activities of daily living (ADLs) without substantial assistance due to a loss of functional capacity, or that the insured requires substantial supervision to protect himself from threats to health and safety due to severe cognitive impairment.
Another living benefit provided by an Accelerated Benefit Rider, offered at no additional cost by RMC’s preferred carriers, protects against critical illness. Critical Illness includes: cancer, heart attack, ALS, blindness, Cystic Fibrosis, Aplastic Anemia, renal failure, heart valve replacement, organ transplant, among other qualifying illnesses.
The newest living benefit provided by Accelerated Benefit Riders protects against critical injury. This living benefit accelerates the policy’s death benefit in the event of an injury that results in coma, paralysis, severe burns, or a traumatic brain injury.
An Accelerated Benefit Rider is a great supplement to a disability or long-term care policy, which may be very expensive to purchase in the individual market.
For more information about living benefits in a life insurance policy, contact your regional representative or RMC Group at 888.599.5553.