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We do not buy
or sell
viatical contracts
(not the actual cover)
   
In sympathy
with people
from 86 nations
who lost loved ones
on 9-11 | |
Accelerated Death
Benefits
Also known
as Living Benefits, Terminal Illness Rider, and similar names, this rider allows
terminally ill insureds to turn their death benefits into cash -- without losing 20% or
more through a sale to a viatical provider.
Viatical
settlement companies may tell you otherwise, but most leading insurers offer Accelerated
Death Benefits.
Many people
think this applies only to cash value (permanent) policies. Not true. Many term policies
include this benefit. Security Mutual Life Insurance Company is a good example. Their
Living Benefits Rider is one of the better ones in the insurance industry:
 | Security
Mutual's Living Benefits Rider may be added to any permanent life insurance policy, and to
term life or survivorship life.
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| The only
requirement for adding the rider is that the face amount (death benefit) is at least
$25,000.
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| There is
no cost to add the rider to new or in-force policies.
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| Insureds
can access their death benefit when life expectancy is 12 months or less.
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| The rider
pays 75% of the death benefit to a maximum of $250,000. Compare this with the 20% or
greater loss to a viatical company. Plus, it's rare that any viatical company pays more
than 75% -- despite what they claim before you apply.
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| Benefits
may be paid in a lump sum or 12 equal monthly payments. (Unless you need the lump sum to
save a home from foreclosure, installments may be more prudent.)
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There may be variations
to the above, where the company had to comply with the laws of different states. Virginia,
for example, requires 50% of the death benefit reserved for dependent children. This would
limit the amount the insurer is allowed to pay you.
Many
insurers now offer Accelerated Death Benefits/Living Benefits with group insurance.
Viatical companies may tell you that insurers won't let you use these funds freely -- that
they restrict the use. Not true. Since insurance companies are regulated by state laws,
insurers cannot dictate how the funds are used. Utah's law, for example, specifically
prohibits restrictions on the use of these funds.
Information
about named insurers is intended to encourage anyone reading this to buy from companies
that truly serve your needs and avoid those that break their promises -- and spread the
word about these companies. In this way we can use the power of the dollar to make
insurers more ethical and responsive.
Insurers are welcome to send information about your benefits.
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