Critical Illness Benefit
The Critical Illness rider gives you the option to accelerate a portion of your death benefit if you are diagnosed with a heart attack, stroke, cancer, renal failure, major organ transplant or ALS.
Hypothetical Example: Critical Illness Benefit — Randi, Age 40
Purchases Safe Harbor Term with a 30-year duration with a $250,000 death benefit.
Randi is diagnosed by her physician with breast cancer at age 62. She has a husband and two children. Prior to getting sick, she worked as a school teacher. Her husband owns a painting business. Randi chooses to exercise her critical illness rider and receive a portion of her death benefit early. She plans to use the money to help the family cover her medical expenses and make up for her husband’s lost income while he cares for her.
1. Base Policy Death Benefit = $250,000
2. Randi accelerates 95% of her death benefit or $237,500. Her actual benefit amount will be based on the severity of her illness and its impact on her future life expectancy. Given her condition, Randi receives a benefit of $100,526 to be used as she wishes.
3. Her remaining death benefit is now $12,500 and her premium is reduced proportionally.2
Without this living benefit from her Safe Harbor Term policy,
Randi’s family would have to dip into their retirement
savings to cover the unexpected medical costs.