Life Insurance
What is a Living Benefit? American National’s Living Benefits are Accelerated Benefit Riders (ABRs) which provide the potential to receive a partial or full accelerated life insurance benefit if the insured is diagnosed with a qualifying medical condition.
The Accelerated Benefit Riders can provide an unrestricted cash benefit when it is needed to help you at a critical time and help protect the money you have saved for retirement and other life needs.
The Accelerated Benefit Riders provide living benefit options for no additional premium. For many years, insurance was purchased to provide death benefit protection for surviving family members. However, insurance did not help when an insured was struck down by a debilitating Critical, Chronic, or Terminal illness. American National offers you the potential to access part of your life insurance death benefit in the event you suffer a qualifying illness and may not be able to work.1 American National’s Accelerated Benefits Riders for Certainly, carrying disability insurance and/or long-term care insurance is ideal for such situations and should be considered by everyone but not everyone can afford to purchase such coverage or keep the coverage in place for the rest of their lives
Accelerated Benefit Riders
Critical, Chronic, and Terminal illness may provide you a full acceleration of your life insurance policy or a partial benefit that will allow you to keep the remainder of your policy. Multiple partial benefits are potentially available if a partial benefit is taken. For example, if 25% of the death benefit is accelerated, 75% of the death benefit would remain and could be accessed later, if needed. The partial or full accelerated death benefit may be paid in a lump-sum or applied to an annuity that will provide income for a specified period. You may use the benefit for any purpose.
For those individuals who need life insurance coverage and are seeking protection in the event of chronic, critical, and terminal illnesses, American National’s Accelerated Benefit Riders may be an option to potentially provide an additional financial resource if someone becomes afflicted by a qualifying illness that results in a greatly reduced life expectancy. The benefit these riders provide is not tied to medical bills incurred but is instead tied to the face amount of the policy, the cash value at the time a claim is made, and the reduction in future life expectancy as a result of the illness. There is no restriction on how you may use the funds you receive. When computing the amount of available benefit, American National discounts the future premiums due under the policy. If someone has a life expectancy of 24 months, the death benefit would only be reduced by a small amount to account for the loss of two premium paying years. However, if someone has a debilitating condition, but a ten year life expectancy, the death benefit would be reduced by a larger amount to account for the loss of 10 premium paying years. For example, if someone who is 50 years old has a heart attack and is back at work in three months there would not be a substantial available benefit Certainly, carrying disability insurance and/or long-term care insurance is ideal for such situations and should be considered by everyone but not everyone can afford to purchase such coverage or keep the coverage in place for the rest of their lives. since the life expectancy was not dramatically impacted. However, if that 50-year-old has a very severe heart attack that results in a 33% chance of living for five years, their life expectancy would be dramatically diminished resulting in a larger available benefit. Accelerated Benefit Riders can be a safety net if a qualifying illness arises and results in a significantly reduced life expectancy. ABRs are not a substitute for long-term care insurance but can provide a potential source of funds under the proper circumstances.
What is a Living Benefit? American National’s Living Benefits are Accelerated Benefit Riders (ABRs) which provide the potential to receive a partial or full accelerated life insurance benefit if the insured is diagnosed with a qualifying medical condition.
The Accelerated Benefit Riders can provide an unrestricted cash benefit when it is needed to help you at a critical time and help protect the money you have saved for retirement and other life needs.
The Accelerated Benefit Riders provide living benefit options for no additional premium. For many years, insurance was purchased to provide death benefit protection for surviving family members. However, insurance did not help when an insured was struck down by a debilitating Critical, Chronic, or Terminal illness. American National offers you the potential to access part of your life insurance death benefit in the event you suffer a qualifying illness and may not be able to work.1 American National’s Accelerated Benefits Riders for Certainly, carrying disability insurance and/or long-term care insurance is ideal for such situations and should be considered by everyone but not everyone can afford to purchase such coverage or keep the coverage in place for the rest of their lives
Accelerated Benefit Riders
Critical, Chronic, and Terminal illness may provide you a full acceleration of your life insurance policy or a partial benefit that will allow you to keep the remainder of your policy. Multiple partial benefits are potentially available if a partial benefit is taken. For example, if 25% of the death benefit is accelerated, 75% of the death benefit would remain and could be accessed later, if needed. The partial or full accelerated death benefit may be paid in a lump-sum or applied to an annuity that will provide income for a specified period. You may use the benefit for any purpose.
For those individuals who need life insurance coverage and are seeking protection in the event of chronic, critical, and terminal illnesses, American National’s Accelerated Benefit Riders may be an option to potentially provide an additional financial resource if someone becomes afflicted by a qualifying illness that results in a greatly reduced life expectancy. The benefit these riders provide is not tied to medical bills incurred but is instead tied to the face amount of the policy, the cash value at the time a claim is made, and the reduction in future life expectancy as a result of the illness. There is no restriction on how you may use the funds you receive. When computing the amount of available benefit, American National discounts the future premiums due under the policy. If someone has a life expectancy of 24 months, the death benefit would only be reduced by a small amount to account for the loss of two premium paying years. However, if someone has a debilitating condition, but a ten year life expectancy, the death benefit would be reduced by a larger amount to account for the loss of 10 premium paying years. For example, if someone who is 50 years old has a heart attack and is back at work in three months there would not be a substantial available benefit Certainly, carrying disability insurance and/or long-term care insurance is ideal for such situations and should be considered by everyone but not everyone can afford to purchase such coverage or keep the coverage in place for the rest of their lives. since the life expectancy was not dramatically impacted. However, if that 50-year-old has a very severe heart attack that results in a 33% chance of living for five years, their life expectancy would be dramatically diminished resulting in a larger available benefit. Accelerated Benefit Riders can be a safety net if a qualifying illness arises and results in a significantly reduced life expectancy. ABRs are not a substitute for long-term care insurance but can provide a potential source of funds under the proper circumstances.
1) The benefit is subject to an administrative fee of up to $500 and an actuarial discount that will be assessed when the benefit is elected. 2) National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP) – https://www.cdc.gov/ chronic disease/resources/infographic/chronic-diseases.htm. 3) University of California San Francisco – https://healthpolicy. ucsf.edu/icu-outcomes. 4) A request for an accelerated death benefit may only be beneficial if the qualifying event results in significant deterioration of the rider insured’s life expectancy. The size of the accelerated benefit payment is primarily dependent on the life expectancy of the insured at the time of election. A shorter life expectancy will result in a larger end payment. 5) Claims will not be processed until at least thirty days after the qualifying illness has occurred. 6) The amount of outstanding policy loans plus accumulated interest will be deducted only if the qualifying insured is the insured under the base policy.
Accelerated Benefit Rider Notice Policy Form Series: ABR14-TM; ABR14-CH; ABR14-CT; PUAR16; ARTR18. Have your agent refer to rider forms for a complete list of illnesses and definitions. The riders are subject to an administrative fee of up to $500 and an actuarial discount that will be assessed when the benefit is elected. Outstanding policy loans will reduce the amount of the benefit payment. The accelerated death benefit is an unrestricted cash payment. The actuarial discount is primarily dependent on the life expectancy of the insured at the time of election. The Chronic and Terminal Illness Riders are intended to receive favorable tax treatment under 101(g) of the IRS. Receipt of a benefit could be a taxable event. You should consult a tax advisor regarding the tax status of any benefit paid under these riders. Receipt of accelerated benefits may affect your eligibility for Medicaid, supplemental security income, or other governmental benefits or entitlements. Before accelerating any benefit you should consult an advisor to determine the impact on your eligibility. Accelerated benefit riders are not replacements for Long-Term Care Insurance. This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy or certificate does not provide long-term care insurance subject to California long-term care insurance law. The policy or certificate is not a California Partnership for Long-Term Care program policy. This policy or certificate is not a Medicare supplement policy. Accelerated benefit riders (“ABR”) and long-term care insurance (“LTCI”) provide different types of benefits. An ABR allows the insured to access a portion of the life insurance policy’s death benefit while living and may be used for any purpose. LTCI provides reimbursement for necessary care received due to the inability to perform activities of daily living or cognitive impairment. Coverage may include reimbursement for the cost of a nursing home, assisted living, home health care, homemaker services, adult day care, hospice services or respite care for the primary caretaker. The benefits may be conditioned on certain requirements or meeting an elimination period or limited by type of service, the number of days or a maximum dollar limit. Benefits under some ABRs and all LTCI are conditioned upon the insured not being able to perform two or more of the activities of daily living or being cognitively impaired. California: See form 10741-CM for a more detailed comparison of benefits provided by an ABR and LTCI. Neither American National nor its representatives give legal or tax advice. Agents must refer clients to their tax advisor or attorney for tax or legal advice. American National Insurance Company, Galveston, Texas Not FDIC/NCUA insured | Not a deposit | Not insured by any federal government agency | No bank/CU guarantee | May lose value
Accelerated Benefit Rider Notice Policy Form Series: ABR14-TM; ABR14-CH; ABR14-CT; PUAR16; ARTR18. Have your agent refer to rider forms for a complete list of illnesses and definitions. The riders are subject to an administrative fee of up to $500 and an actuarial discount that will be assessed when the benefit is elected. Outstanding policy loans will reduce the amount of the benefit payment. The accelerated death benefit is an unrestricted cash payment. The actuarial discount is primarily dependent on the life expectancy of the insured at the time of election. The Chronic and Terminal Illness Riders are intended to receive favorable tax treatment under 101(g) of the IRS. Receipt of a benefit could be a taxable event. You should consult a tax advisor regarding the tax status of any benefit paid under these riders. Receipt of accelerated benefits may affect your eligibility for Medicaid, supplemental security income, or other governmental benefits or entitlements. Before accelerating any benefit you should consult an advisor to determine the impact on your eligibility. Accelerated benefit riders are not replacements for Long-Term Care Insurance. This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy or certificate does not provide long-term care insurance subject to California long-term care insurance law. The policy or certificate is not a California Partnership for Long-Term Care program policy. This policy or certificate is not a Medicare supplement policy. Accelerated benefit riders (“ABR”) and long-term care insurance (“LTCI”) provide different types of benefits. An ABR allows the insured to access a portion of the life insurance policy’s death benefit while living and may be used for any purpose. LTCI provides reimbursement for necessary care received due to the inability to perform activities of daily living or cognitive impairment. Coverage may include reimbursement for the cost of a nursing home, assisted living, home health care, homemaker services, adult day care, hospice services or respite care for the primary caretaker. The benefits may be conditioned on certain requirements or meeting an elimination period or limited by type of service, the number of days or a maximum dollar limit. Benefits under some ABRs and all LTCI are conditioned upon the insured not being able to perform two or more of the activities of daily living or being cognitively impaired. California: See form 10741-CM for a more detailed comparison of benefits provided by an ABR and LTCI. Neither American National nor its representatives give legal or tax advice. Agents must refer clients to their tax advisor or attorney for tax or legal advice. American National Insurance Company, Galveston, Texas Not FDIC/NCUA insured | Not a deposit | Not insured by any federal government agency | No bank/CU guarantee | May lose value
