“Here’s where the Chronic Illness
Benefit has its greatest impact —
to protect the family’s assets and,
more importantly, extend care
for the insured.”
$91,250 per calendar year — less than
the IRS per diem amount and less than
24% of the $1,000,000 life insurance
death benefit at the time of claim.
• Benefit to be paid systematically on a
monthly basis ($7,604.16 per month).
• He has met the waiting period and
has been certified by a licensed
practitioner for the severe cognitive
• At this point, he has no other long-term care or government assistance
no-lapse guarantee can also be adjusted
downward to reflect the insured’s lower
projected life expectancy.
This is just one example. Each individual’s situation should be carefully considered prior to making a claim for accelerated
benefits. For no-lapse guaranteed policies
that typically have little cash value to borrow or withdraw from without terminating
the no-lapse guarantee, Accelerated Benefit riders can become even more important
as living benefits or safety-net protection
and peace of mind.
• Guaranteed Issue
• Up to $50,000+
• In Addition to
• List Billing
• Up to Age 65
Prior to 1st Monthly Claim
After 1st Claim
C;;’; ;; W;;’;
The Accelerated Benefit can provide
the $91,250 the family needs for another six and a half years, assuming there
are no increases in cost.
Notice that there is a proportional reduction in the death benefit and cash
value as a result of the early payment of
the death benefit. The adjustment reflects
the loss of mortality and other policy
charges and interest on early payment at
a current rate of 5.75%. As a result of the
lower death benefit, the ongoing no-lapse
guaranteed premium is also reduced and
needs to be paid, but the duration of the
Thomas E. Daley, CLU, ChFC, is
regional director for the Penn
Mutual Life Insurance Company’s
New Jersey Metro Region of the
Independence Financial Network.
He is a past president and a current board
member of the South Jersey Chapter of the
Society of Financial Service Professionals and
a membership committee representative for
the Association for Advanced Life Underwriting.
His office is located in Mt. Laurel, N.J., and he
can be reached at (856) 234-7366 or daley.
email@example.com • www.piu.org
LifeInsuranceSelling.com / LIS / January 2011 55
For information circle no. 19