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.
(Footnote: We recommend that you contact your tax advisor when making decisions about electing to receive benefits from any accelerated benefit product, as the owner could incur a tax obligation in some cases.)
At Columbus Life, we know that life insurance can even do more to help. That’s why we offer Life Plus, 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.
(Footnote: Certain states do not have a provision for chronic illness. In these states permanent confinement is a qualifying event. Contact your financial professional for information about your state.)
As long as you qualify for the coverage, a rider like this is automatically included with your policy at no additional premium cost.
(Footnote: A fee of up to $250 may be charged for an advance payment.
Product and rider availability, provisions and benefits may vary by state. The death accelerated death benefit under this rider will be made available to you on a voluntary basis only. It is possible that all or part of an advance may be considered taxable by the internal revenue service. You should consult your attorney, accountant or other tax advisor before requesting an advance under this rider. Rider availability is subject to underwriting based on health and other factors.)
An accelerated death benefit rider can provide the flexibility to take an advance as a lump sum or as periodic payments.
(Footnote: The lump-sum advance may be taken as a single payment or as frequently as monthly. For terminal illness and critical illness, all advances must be taken within 12 months of the first advance. For chronic illness, a one-time lump-sum advance or periodic payments can be taken.)
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 Life Plus 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 ways that matter 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.
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. Product and rider provisions, availability, definitions and benefits may vary by state. Accelerated Death Benefit Rider series CLR-202 1409.
Columbus Life Insurance Company is licensed in the District of Columbia and all states except New York.
© 2020 Columbus Life Insurance Company. All rights reserved.
CL 5.1998-LB-CVID-0220