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Saturday, September 19 2015

Terminal Illness Life Insurance Accelerated Benefit Rider
Generally, you will be certified as terminally ill if you have been diagnosed with a Terminal Illness that will result in death within 24 months of certification of the illness by a physician. In some states, the definition of "terminally ill" may require a 12 month life expectancy instead of 24. Refer to your state specific information for qualifying term.

This accelerated benefit rider allows the owner to accelerate some or all of the Insured Person's base life insurance benefit in the event the Insured is diagnosed with a terminal illness. The Terminal illness ABR provides you with access to the insured's death benefit should you become terminally ill.

Generally, insurance companies will send the insured an IRS Form 1099-LTC if you receive an accelerated death benefit on accounts of a Chronic Illness or a Terminal Illness. Insurance companies will send the insured IRS Form 1099-R if you receive an accelerated death benefit on account of a Critical illness.

The sum that will be included in Box 2 (Accelerated death benefits paid) of IRS Form 1099-LTC or in Box 1 (Gross distribution) of IRS Form 1099-R will be the actual sum that the insured receives by check or otherwise minus any refund of premium and/or loan interest included with the benefit payment plus any unpaid but due policy premium, if applicable, and/or pro rate amount of any loan balance.

The maximum amount of life insurance death benefits that may be accelerated as to an Insured person under all accelerated benefit riders is the lesser of the existing amount of such death benefits of a lifetime maximum of $1,500,000.

Receiving Benefits will be received as a lump sum. There is no waiting period or annual benefit limit, but there is a lifetime limit amount of benefits you can receive across all ABRs.

Options if you need it, and you qualify, you can elect to either of the following:

  • Request the full acceleration, on a discounted basis, and use the lump-sum as you wish.
  • Choose to leave a portion of the policy's death benefit intact and receive a partial benefit.
  • Choose to leave the entire policy intact for the beneficiary.
Posted by: World Wealth Insurance AT 02:55 pm   |  Permalink   |  Email
Wednesday, September 09 2015

When worse comes to worst, wouldn't it be great if you don't have to worry about anything? Having yourself insured can give your family the peace of mind during time of difficulties.

Life Insurance is a temporary or permanent insurance policy provided by a life insurance company in California and other states providing family a temporary or permanent financial replacement and protection to help the family when death occurs. It can also be a temporary or permanent replacement for savings and income replacement in the long run.

Temporary Life Insurance or Terrm Life Insurance, provides life protection only for a limited period of time. Temporary life protection provides temporary protection.

With a temporary life protection, you can:

  • Protect your home mortgage. California mortgage insurance is a financial guaranty for the lender in the event a borrower defaults on a mortgage. With mortgage policy, the mortgage insurer reduces the loss to the lender. Typical mortgage policy is different from temporary mortgage life policy. A temporary mortgage life insurance is a policy available in California and other US states designed specifically to repay mortgage debt in the event of the death of the borrower.
  • Provide security for your family. With family protection insurance, funds are provided to support the widow or orphans. Through family protection policy, you can also pay a child's college education or pay for other capital needs, and final bills such as medical or expenses. This is also available in California and other US states.
  • Act as income replacement. One of the important reasons for life insurance is income replacement. Having a life insurance helps provides income replacement protection to the family living in California and other states. If an untimely death occurs, the family need not worry of the monthly income replacement since through income replacement policy, the lost income will be substituted by the death benefit pay-out.
Types of Life Insurance
  • Term Life Insurance
  • Whole Life Insurance
  • Universal Life Insurance
  • Index Universal Life
  • Second to Die Policy
Posted by: World Wealth Insurance AT 03:26 pm   |  Permalink   |  Email
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