Chronic and Critical Accelerated Death Benefit Riders – How do they Work?
Chronic Illness Accelerated Death Benefit Rider:
This benefit rider allows the policyowner to accelerate the death benefit if the insured becomes chronically ill. Chronically ill is
defined as being unable to perform two of the six activities of daily living (bathing, continence, dressing, eating, toileting and
transferring) without assistance from another person, or being severely cognitively impaired for at least 90 consecutive days.
After a 90 day waiting period, the policyowner can accelerate up to 24% of the initial death benefit amount annually. The benefit
can also be accessed monthly up to 2%; quarterly up to 6% or semi-annually up to 12% of the death benefit.
The maximum lifetime benefit is 90% of the death benefit or $500,000, whichever is less.*
The policy must be in force two years before benefits are available
Critical Illness Accelerated Death Benefit Rider:
This benefit rider allows the policyowner to accelerate the death benefit if the insured becomes critically ill. A critical illness is
one of the qualifying events: heart attack, stroke, ALS (Lou Gehrig’s disease), diagnosis of certain cancers, kidney failure and
major organ transplant.
After a 30 day waiting period, the policy owner can access the death benefit up to the maximum total amount of lifetime benefits
for an Insured under all Accelerated Death Benefit Riders, which is $500,000.
What factors are taken into account for both chronic and critical illness riders when determining the amount to
The amount of death benefit accelerated and the future premiums that would be due.
The Company’s assessment of the life expectancy of the insured, which is based on age and overall medical condition
at time of claim.
Accelerated benefit interest rate in effect (used to determine the present value of future benefits and premiums).
Any administrative fees assessed.
Cash surrender value of the policy or rider, if appl