When purchasing life insurance, Accelerated Benefits Riders, also called a Living Benefit, provide protection while you are living if you experience a qualifying terminal, chronic, critical illness or critical injury. With some polices there are no additional costs for this rider and it allows the policy holder to access the death benefit while living. You can take advantage of a living benefit when:
- You have a terminal illness.
- You will be permanently confined to a nursing home.
- You can’t perform the activities of daily living on your own.
- You have any illness caused by Coronavirus (COVID-19).
Living benefits typically pay out a portion of the face value of the policy. Proceeds from a living benefit are deducted from the insurance policy’s face value and can be received in a lump sum or in monthly payments. Income from a living benefit is usually not subject to federal income tax and in most states, it is not subject to state income tax. If you take a living benefit payment, you must keep paying premiums if you want your beneficiaries to receive the reminder.
You can use the benefit for any reason:
- Household expenses.
- Adult Day Care.
- Home modifications.
- Regular bills.
- Nursing home care.
- Quality of life expenditures.
Remember, life insurance can do more than pay a death benefit. It also protects you while you are living.
Our insurance team has experts for all your life insurance needs. So, call today to learn about your life insurance options. Stuart R. Shapiro 516-338-8700 ext.1236
