Accelerated Death Benefit Riders: When Living Benefits Matter
What features matter most when choosing a life insurance product that’s right for you and your family? If the option to access part of your policy benefits while you’re living is important to you, an accelerated death benefit rider may be able to help.
Life insurance already plays an important role in helping to protect your family through the potential of an income tax free death benefit for your beneficiaries.
At Columbus Life, we know that life insurance can even do more to help. That’s why we offer an accelerated death benefit rider that gives policyholders early access to a portion of their death benefit if they’re facing life events such as terminal illness, a chronic illness, or any other medical conditions that can be specified in a rider – like certain heart conditions, a serious stroke, and life-threatening cancers.
As long as you qualify for the coverage, a rider like this is automatically included with your policy at no additional premium cost.
(Footnote: The ADBR is added at no additional premium (although a fee of may be charged for an advance payment).)
An accelerated death benefit rider can provide the flexibility to take an advance as a lump sum or as periodic payments.
This allows you the freedom to spend it however you choose – because medical bills are not the only burden a serious illness can create.
Some people use the accelerated death benefit advance to pay down bills, others to cover lost income and pay for day-to-day- expenses, while others use it to create lasting memories with those they love.
It’s completely up to you.
Want to learn more about how Columbus Life’s accelerated death benefit rider can help protect your family?
Ask your financial professional for more information about life insurance from Columbus Life – and discover how an accelerated death benefit rider can help give you the freedom to use your policy’s living benefits in the way that matters most to you.
The accelerated death benefit under this rider will be made available on a voluntary basis only. This rider and its benefits are not available in all states and benefits may vary by state. Consult your financial professional for information about your state. Loans and withdrawals may generate an income tax liability, reduce the Account Value and the Death Benefit, and may cause the policy to lapse.
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.
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.
Payment of Accelerated Death Benefits, if not repaid, will reduce the Death Benefit and affect the other policy values. 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. Columbus Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation. The information provided is for educational purposes only.
Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value.
Payment of the benefits of Columbus Life Insurance Company products is backed by the full financial strength of Columbus Life Insurance Company, Cincinnati, Ohio.
Columbus Life Insurance Company is licensed in the District of Columbia and all states except New York.© 2020, 2022 Columbus Life Insurance Company. All rights reserved.