Life Insurance With a Chronic Illness or Accelerated Death Benefit Rider

This type of plan provides:

• An accelerated death benefit that may be limited and not sufficient to cover long term care costs in the future.
• A “Chronic Illness Rider” or “Terminal Illness Rider” is different from a long term care Rider. In many cases, a “permanent condition” is required to trigger benefits.
• Definitions in the contract language range on these policies and benefit triggers vary from requiring a “permanent condition,” “chronic condition,” or help with Activities of Daily Living “ADLs.”
• Underwriting criteria that differ from those used in Long Term Care Insurance.
• Riders vary by carrier and state.