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Maintain Your Quality of Life as You Age

Life Insurance
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We often live as if there is nothing that can harm us — that we will continue to carry on with our life as we know it well into the future. We rarely stop to think about what would happen if a  chronic illness or terminal illness would occur.

Often known as a living benefit, an accelerated death benefit rider can help give you the option to advance a portion of your life insurance policy's death benefit to use while you are still living.

How Living Benefits Work

Accelerated death benefit riders (ADBRs) allow you to receive an advance on your death benefit for select medical reasons, including:

  • Terminal illness1, with death expected within a specified period;
  • Chronic illness1, as specified in the life insurance policy; or
  • A specific medical condition, as listed in the rider.2

ADBRs can help provide peace of mind for you and your family if you experience one of the conditions listed above, and can help to offset costs associated with illness or long-term care.

Use Living Benefits to Offset Many Expenses

While many people use living benefits to help offset the financial costs associated with an illness, there are no restrictions on how your ABDR is used. For example, you could use it to pay for hospital bills, medications and treatments or help fund education expenses and pay household bills. However, it's always a good idea to check with your insurance company for details on how you can use any living benefits rider3.

Living benefit riders are often issued with a life policy at no additional charge4. Some companies, however, may require an additional premium for the coverage. Talk to a financial professional to see what type of living benefit riders may be available on your insurance coverage.

The Power of Living Benefits

Columbus Life’s Accelerated Death Benefit Rider gives you the power to access a portion of your life insurance policy’s death benefit while you are still living.5


1 Product provisions, availability, definitions and benefits vary by state.
2 Critical Illness in CA; Specified Medical Condition not available in CA.
3 Payment of Accelerated Death Benefits, if not repaid, will reduce the Death Benefit and affect the other policy values.
4 A fee may be charged for an advance payment.
5 We recommend that you contact your tax advisor when making decisions about electing to receive benefits from any accelerated benefit product, as the owner may incur a tax obligation.

Living benefits are accessed through an advance of the policy’s death benefit, provided the insured meets eligibility requirements under the applicable rider. An advance is treated as a lien against the policy and will reduce the Death Benefit payable if not repaid. The advance will accrue interest each year.  The lien may be increased if necessary to keep your policy in effect.  We may charge a fee of up to $250.00 for an advance payment. The accelerated death benefit will terminate with the policy.

Life insurance proceeds paid in the form of an accelerated death benefit when the insured has become chronically or terminally ill, and is otherwise eligible for benefits, are intended to receive favorable tax treatment under Section 101(g) of the Internal Revenue Code (26 U.S.C. Sec. 101(g)).  There may be tax consequences in some situations in accepting an accelerated benefit payment amount.  Consult your tax advisor before taking an advance.

This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy does not provide long-term care insurance subject to California long-term care insurance law. This policy is not a California Partnership for Long-Term Care program policy. This policy is not a Medicare Supplement policy.

Product features differ between long-term care insurance and life insurance accelerated death benefit riders. Accelerated death benefit riders pay an unrestricted advance of a portion of the life insurance death benefit when the insured experiences terminal or chronic illness as defined in the rider. You do not have to show incurred care expenses associated with an accelerated death benefit. The maximum benefit payable is based on the policy’s cash value and face amount. Any advance paid will reduce the death benefit of the policy. Long-term care policies or riders, on the other hand, pay benefits based on expenses incurred by the policyholder for long-term care. The total benefits available for long-term care insurance are selected by the policyholder at issue. Long-term care insurance is a stand-alone insurance policy or a rider designed to pay for the cost of long-term care services. Long-term care insurance may include coverage for such qualifying events as institutional care, care in a nursing home or skilled nursing facility, home care coverage, hospice care, respite care, or community care.

Receipt of Accelerated Benefit payments may adversely affect the recipient’s eligibility for Medicaid or other government benefits or entitlements.  They may also be considered taxable by the Internal Revenue Service. You should contact your personal tax advisor for assistance.

Accelerated Death Benefit Rider series CLR-202 1409, CLR-201 1208, CLR-137 1208, CLR-143 1208 and CLR-161 1208. Product and rider provisions, availability, definitions, and benefits may vary by state.