Benefits for Living is an innovative life insurance concept that offers flexibility when meeting the insurance needs of your client. 

Benefits for Living

 is a powerful financial tool that provides your family with financial security at death but also provides your family with financial security in the event of a long-term or chronic illness.

Through the acceleration of the death benefit due to a chronic illness, this multi-dimensional life insurance concept covers the entire lifetime of the insured and can provide significant living benefits in addition to a death benefit. Think of this as a “Use It or Use It” approach. It’s important to note that the acceleration of the death benefit as a result of a chronic illness provides living benefits on a cash basis that can be used for any purpose. For 2012, the maximum that can be accelerated for a chronic illness is $113,150, which is indexed annually.

Selecting a life insurance policy that provides living benefits gives your clients an extra advantage as it is designed to change with the events of their lives. By providing financial security for survivors through death benefit protection as well as lifetime financial security to cover costs associated with a long-term illness, your clients can be protected no matter what lies around the bend. 

 

Discover living benefits within a life policy.

Benefits for Living

 is a competitive Universal Life concept which gives the insured life insurance with an accelerated benefit without having to qualify for long-term care insurance. No other life insurance policy has this benefit as it only requires life underwriting with no additional cost for the acceleration and is on all policies up to $2 million of death benefit.

60% of all Americans who reach the age of 65 may need long-term care at some point in their remaining lives. Health insurance plans do not cover certain costs associated with long-term illness and Medicaid only pays when an individual has spent down or liquidated a substantial amount of their assets.

Up to now, the only options available to plan for the expenses related to chronic illness or long-term care was to purchase long-term care insurance, self-insure or spend down most assets and qualify for Medicaid. Long-term care insurance can be quite valuable yet often costly and the possibility does exist of never needing the benefit. As such, it’s a “Use It or Lose It” policy. Self-insuring is risky as retirement income and retirement assets could be depleted, leaving a smaller nest egg for the spouse and/or surviving children. 

Benefits for Living 

was named a "revolutionary new product" by Financial Advisor magazine.

 

Selecting a life insurance policy with income-tax free living benefits may be one of the most valuable decisions you make. This multi-dimensional concept that pays the benefit when the insured needs it most is a wonderful consumer product that should be included as a foundation in everyone's insurance plan.

 

Below are the key components of the Benefits for Living concept:

• No additional cost for the rider.
• Available on all policies up to $2 million of death benefit.
• Benefit paid annually as own doctor certifies that the insured cannot perform 2 out of 6 activities of daily living.
• Death benefit accelerated as living benefits up to annual IRS limit
• The amount is indexed annually growing to $300/day in 2011 and expected to increase 4%/year thereafter
• Paid as a "cash" benefit and can be used for any purpose.
• Underlying policy and rider are underwritten on a mortality basis, and the rider is on all policies regardless of the underwriting class
• At the time of the chronic illness trigger, an independent life expectancy will be completed.
• As there is no additional cost for the rider and to make the insurance company whole, there is a interest component applied to the annual benefit of the life expectancy (LE)
• A paid-up policy is available at the chronic illness trigger, as the insurance company present values the annual cost of insurance (times the net amount of risk) to life expectancy
• Both the annual benefit (plus interest to LE) and the paid-up policy costs are charges to the death benefit
• The CSV is reduced annually by the annual percentage reduction in the death benefit
• Each year, as long as the insured recertifies, they can take an additional benefit from $0 to the IRS annual limit
• The rider is currently on National Life's Indexed UL (Ultra Select) and the Current Assumption UL (Assured Plus Protector)
• Unlike hybrid products in the marketplace, this is a competitive UL policy that accelerates the death benefit as a living benefit on a chronic illness trigger. No additional charge for the rider and only mortality underwriting.
• Works well within a trust as it pays a cash benefit.
• A wonderful consumer concept as it provides a competitive UL policy and the ability for living benefits through the chronic illness acceleration rider.
• Only in New York at this time.

 

 

Calculate projected Death Benefit remaining following annual benefit. To use this Excel file, enable macros.

A life insurance concept that pays a benefit when the insured needs it most.

 

Benefits for Living is a trade name of LifeVentures Corp. LifeVentures Corp is independent of National Life.

Assured Plus Protector Universal Life Insurance, Ultra Select Indexed Universal Life Insurance and applicable riders are underwritten by National Life Insurance Company.