Accelerated Access
Chronic Illness Rider
Financial Relief, Lifelong Protection
Video: Chronic Illness Rider
Accelerated Access Chronic Illness Protection Rider
Protect Your Future, Live with Confidence
With the Accelerated Access Chronic Illness Protection Rider, you can access your life insurance benefits while you're still living if diagnosed with a chronic illness.
This innovative rider combines the security of life insurance with the flexibility to cover unexpected health challenges—without the limitations of traditional long-term care policies.​
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Here’s why the Accelerated Access Chronic Illness Protection Rider stands out:
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Flexible Spending: Use your benefits for any expense—from medical care to home improvements or even supporting loved ones who help you.
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Tax-Free Benefits: Receive payments income-tax-free to maximize your financial support.
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No Receipts Required: Spend your money as you see fit—no need to justify expenses.
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Not "Use It or Lose It": If you don’t need the chronic illness benefits, your policy’s death benefit passes to your beneficiaries tax-free.
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Inflation Protection: Choose the IRS per diem option for payouts that may increase over time, unlike fixed long-term care policies.
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Key Features of the Accelerated Access Chronic Illness Protection Rider
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The Accelerated Access Chronic Illness Protection Rider is available with select life insurance policies. Here’s what makes it a game-changer:
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Customizable Benefit Amount: Select between 50% to 100% of your policy’s death benefit (up to $3 million) to accelerate for chronic illness needs.
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Multiple Payout Options: Choose how you receive your benefits at the time of purchase:
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2% of your rider benefit monthly (e.g., $10,000/month for a $500,000 benefit).
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4% of your rider benefit monthly (e.g., $20,000/month for a $500,000 benefit).
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IRS Maximum Per Diem (e.g., $12,505/month in 2024 for a 30-day month, potentially increasing over time).
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Lump Sum Option: At the time of claim, you can opt for a lump sum (subject to an actuarial discount) instead of monthly payments.
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Waiver of Monthly Deductions: Policy premiums are waived while you receive rider benefits, easing your financial burden.
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Immediate Eligibility: Benefits are available as soon as your policy is issued, subject to a 90-day eligibility period.
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Care Coordination Services: Access free, optional support services to help navigate your care needs when you file a claim.
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Guaranteed Death Benefit: Any unused rider benefits remain as a tax-free death benefit for your beneficiaries.
How it Works
Step 1: Add the Accelerated Access Chronic Illness Protection Rider
The rider must be added to your life insurance policy at the time of purchase. Costs vary based on your age, gender, underwriting class, and selected benefit amount.
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Step 2: Qualify for Benefits
To activate the rider, you must be certified by a licensed healthcare practitioner as chronically ill, meeting one of these criteria for at least 90 consecutive days:
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Inability to Perform Two Activities of Daily Living (ADLs) without substantial assistance:
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Bathing
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Eating
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Dressing
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Continence
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Toileting
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Transferring
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Severe Cognitive Impairment requiring substantial supervision (e.g., Alzheimer’s or irreversible dementia), verified by clinical tests measuring:
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Short-term or long-term memory
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Orientation to people, places, or time
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Deductive or abstract reasoning
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Note: Chronic conditions do not need to be permanent to qualify.
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Step 3: Receive Your Benefits
Once approved, you choose how to receive your tax-free benefits:
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Monthly Payments: Select your preferred payout option (2%, 4%, or IRS per diem) or a lower amount if desired.
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Lump Sum: Opt for a one-time payment (discounted actuarially) if it better suits your needs.
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Benefits continue until your rider benefit is exhausted or your condition improves.
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Your life insurance death benefit reduces by the amount paid out, but any remaining benefit goes to your beneficiaries tax-free upon your passing.
Step 4: Spend Freely
Use your funds for any purpose, such as:
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Medical Care: Adult daycare, assisted living, nursing homes, or prescription drugs.
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Lifestyle Needs: Home maintenance, transportation, or massage therapy.
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Support for Loved Ones: Compensate friends or family who take time off to care for you.
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Home Upgrades: Install ramps, upgrade showers, or buy new furniture for comfort.