The Power of Life Insurance - Does your family have living benefits?

Most people know life insurance can provide financial protection and continuity during one of life’s most difficult times — the death of a loved one. At North American, we believe your clients should get more from their life insurance policy and have access to benefits they can use while they are living.1 This is accomplished with the Accelerated Death Benefit Endorsement for Critical, Chronic, and Terminal Illness, or CCT for short. The unexpected can and does happen. How do your clients plan to pay for extended nursing care for a chronic condition or the high cost of treatment if they are diagnosed with a critical illness like cancer? If they plan to use their own funds, they should keep the potential costs in mind. Here are some of the costs they might expect to pay: • Private room in a nursing home — $105,850 per year 2 • Licensed home health aide (non-medicare certified) — $54,912 per year 2

HYPOTHETICAL EXAMPLES*

Critical illness — Not unlike many Americans, your client unexpectedly has a heart attack. Your client could qualify for the critical illness benefit and elect to accelerate a portion of their death benefit to help them cover their medical expenses. It could also help them make mortgage payments while they’re unable to work.

Chronic illness — At age 80, your client is diagnosed with Alzheimer’s Disease and their doctor certifies they can no longer live alone or at home without supervision. Your client could qualify for the chronic illness benefit and elect to accelerate a portion of the death benefit to help pay for nursing care expenses.1

Terminal illness — Your client’s doctor has informed them that they have less than two years to live. Upon qualifying for the terminal illness benefit on the life insurance policy, your client could elect to accelerate a portion of their death benefit, and use the money to take a vacation to remember with their family.

How do your clients qualify for a CCT acceleration?

A physician or licensed healthcare practitioner must provide written certification that the insured is critically, chronically or terminally ill, as defined in the endorsement.

Critical illness: Specified medical conditions that may qualify for the critical illness benefit include: heart attack, cancer, stroke, major organ transplant, and kidney failure. The owner is allowed an election for each occurrence of a specified medical condition. The owner must file the claim within 12 months of the date of the critical illness event. For complete definitions of the specified medical conditions, please refer to the Accelerated Death Benefit Endorsement form LR508, (form LR498, California only).

Chronic illness: One is considered chronically ill if he or she is unable to perform, for at least 90 days, without substantial assistance from another person, at least two Activities of Daily Living (bathing, continence, dressing, eating, toileting and transferring) or requires substantial supervision by another person to protect against threats to health and safety due to severe cognitive impairment. Definitions for chronic illness may vary by state. Refer to your state specific accelerated death benefit endorsement form for complete information.

Terminal illness: One is considered terminally ill if he or she has been diagnosed with a medical condition which results in a life expectancy of 24 months or less (12 months in Florida).

For additional information, contact livingbenefitsking.com today!