Term Life Insurance With Accelerated Living Benefits

Did you know that there are term life insurance policies that allow you to receive the cash from the death benefit while you are still alive?

When it comes to purchasing life insurance, term life insurance is most often the popular choice due to the amount of protection you can purchase and the affordability of life insurance.

Now you can add the opportunity to receive cash from your policy if you get sick from a chronic, critical or terminal illness.  A term life insurance policy with living benefits should definitely be coverage worth considering.

Life insurance coverage with a living benefits option is becoming an increasingly popular choice for life insurance coverage. Instantly compare the top companies that offer living benefits on their life insurance policies.

Looking to compare life insurance policies? We can help. Enter your ZIP code to get free quotes from multiple insurers.

What is Term Life Insurance with Accelerated Living Benefits?

To begin, term life insurance with living benefits is your basic term life insurance policy. Term life insurance provides a death benefit along with a fixed premium period generally of 10, 15, 20, 25 or 30 years.

The living benefits portion is generally a free policy rider that provides the insured the opportunity to advance a portion of the death benefit associated with a qualifying terminal illness, chronic illness, critical illness or confinement to a nursing home.

Read more: Critical Illness Insurance Coverage

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What Qualifies for Acceleration of Living Benefits?

The life insurance company offering living benefits will specify the qualifications, but generally, the following must be met:

• Qualifying terminal illness with a 6-24 month life expectancy
• Qualifying chronic illness that leaves the insured unable to perform a specified number of activities of daily living (bathing, continence, dressing, eating, toileting and transferring)
• Qualifying critical illness such as a heart attack, stroke, cancer, end-stage renal failure, major organ transplant, ALS, Blindness and paralysis

How can Term Life Insurance with Accelerated Living Benefits Help?

Term life insurance with living benefits can help provide income to pay for:

• Lost Income from time off work due to illness
• Medical bills from what health insurance or Medicare could not cover
• In-home or facility long term care needs

Do all Life Insurance Companies Offer Term Life Insurance with Accelerated Living Benefits?

Although becoming very popular, there are only a few life insurance companies that offer either critical, chronic or nursing home living benefits with their term life insurance plans. (For more information, read our “Benefits & Disadvantages of Group Term Life Insurance“).

However, you will find that most term life insurance policies do offer a terminal illness accelerated death benefit.

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Term Life Insurance Companies that Offer Living Benefits or Accelerated Benefits

Policy name: Transamerica Living Benefits

Issue age: Up to age 80 (Depending on coverage length)

Minimum coverage amount: $25,000

Maximum coverage amount: $2,000,000

Living Benefits: Chronic, Critical & Terminal

Details: Transamerica Living Benefits term life insurance provides three accelerated living benefit riders that are built into the policy. The chronic illness rider provides an insured the option to accelerate 24% of the death benefit within a 12 month period.

The maximum amount of death benefit that can be accelerated over the lifetime of the policy is 90% of the death benefit or $500,000.

The critical illness rider provides an insured the option to accelerate 90% of the death benefit or $500,000 maximum.

The terminal illness rider provides a maximum of 100% of the death benefit for a qualifying terminal illness. For additional policy information, check out our article on Transamerica Living Benefits.

Read more: What is the Best Life Insurance Coverage?

Policy name: Prudential Term Essential & Term Elite

Issue age: Up to age 75 (Depending on coverage length)

Minimum coverage amount: $100,000

Maximum coverage amount: $10,000,000+

Living Benefits: Living Needs Benefit (Nursing Home & Terminal Illness)

Details: Prudential’s Living Needs Benefit rider is a free accelerated death benefit rider that comes with their Term Essential and Term Elite life insurance policies.

The rider provides the insured with the option to accelerate up to a maximum of 70-80% percent of the policy death benefit if confined to a nursing home.

The terminal illness rider provides a maximum of 90-95% of the death benefit for a qualifying terminal illness.  For additional policy information, check out our article on Prudential’s Living Needs Benefit rider.

Policy name: Cincinnati Life Insurance LifeHorizons Termsetter

Issue age: Up to 75 (Depending on coverage length)

Minimum coverage amount: $25,000

Maximum coverage amount: $10,000,000+

Living Benefits: Terminal Illness & Nursing Home Confinement

Details: Cincinnati Life Insurance offers a free accelerated death benefit rider with any purchase of their Termsetter term life insurance policies.

The free-rider provides the option to accelerate up to 50% or $250,000 maximum of the policy death benefit with any qualifying terminal illness or confinement to a nursing home.

It should be noted that Cincinnati Life Insurance allows the acceleration of the death benefit if the insured is expected to die within 24 months. Most life insurance companies are for 12 months.

Be sure to visit our review of Cincinnati Life Insurance for additional policy information.

Policy name: American National Signature Term Life Insurance (ANICO)

Issue age: Up to 70 (Depending on coverage length)

Minimum coverage amount: $250,000

Maximum coverage amount: $10,000,000+

Living Benefits: Chronic, Critical & Terminal

Details: Very similar to Transamerica’s Living Benefits, ANICO also offers chronic, critical and terminal illness accelerated living benefit riders.

Accelerated living benefits are determined based on different factors assessed by the life insurance company. The insured decides whether or not to accept the accelerated benefit payment.

Be sure to check out our full review on ANICO Life Insurance Company for more information.

Term Life Insurance Companies that Offer a Terminal Illness Accelerated Death Benefit Rider

As previously stated, most term life insurance companies offer a free accelerated living benefits rider often called Terminal Illness or Accelerated Death Benefit Rider.

This allows the insured to accelerate a portion of the policy’s death benefit should they become terminally ill and death is expected generally within 12-24 months.

American General (AG Select-A-Term) Up to 50% of the death benefit, maximum $250,000

Axa (Term Series 151X) Up to 75% of the death benefit, maximum $500,000

John Hancock  (Term) Up to 50% of the death benefit, maximum $1,000,000

Banner Life Insurance (OPTerm) Up to 75% of the death benefit, maximum $500,000

Genworth (Colony Term) Maximum acceleration of death benefit, $500,000

Lincoln Financial (Life Elements) Up to 50% of the death benefit, maximum $250,000

Met Life (Guaranteed Level Term) Up to 100% of the death benefit, maximum $250,000

Minnesota Life (Advantage Elite Select) Up to 75% of the death benefit, maximum $1,000,000

Mutual of Omaha (Term Life Answers) Up to 80% of the death benefit, maximum $1,000,000

Nationwide (Guaranteed Level Term) Up to 50% of the death benefit, maximum $250,000

Pacific Life (Prime Term) Up to 75% of the death benefit, up to a maximum of $250,000

Principal (Term) Up to 75% of the death benefit, maximum $1,000,000

Protective (Custom Choice UL) Up to 60% of the death benefit, maximum $1,000,000

Symetra (Term) Up to 50% of the death benefit, maximum $250,000

Voya (Term Smart) Maximum acceleration of death benefit, $250,000

Read more: Genworth Insurance Review – No More Life Insurance?

What Happens when Living Benefits have Been Accelerated?

Depending on the life insurance company, the reduced death benefit remains active and the premium payment for the life insurance coverage is adjusted. Term life insurance that provides living benefits is a great supplement to any health or long term care policy.

It is very important to know that they should not replace any active health or long term care policy as that is not what they are designed for.

In most cases, the acceleration of living benefits is tax-free but can be taxable under certain circumstances.  Before accelerating any benefit, it is important to consult an accountant.

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How to get a Term Life Insurance Quote with Accelerated Living Benefits

Top Quote Life Insurance specializes in accelerated living benefit life insurance policies. (For more information, read our “Term Life Insurance Quotes“).

For immediate assistance contact us now with our live chat button located at the bottom of your screen.  Have additional questions about term life insurance with accelerated living benefits? Send us a message and will get you an answer right away.

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