CHRONIC ILLNESS INSURANCE COVERAGE

---

 A chronic illness rider is an add-on to a life insurance policy that allows you to access your policy’s payout if you’re diagnosed with a qualifying medical condition. Here are the key points:

Purpose: The rider serves as a living benefit, meaning you can tap into it while you’re alive rather than waiting for a death benefit payout.

Eligibility: To activate the rider, you typically need to be diagnosed with a lifelong illness that interferes with at least two of the six basic “activities of daily living”:

• Bathing or showering
• Dressing
• Eating
• Getting into or out of bed or a chair
• Using the toilet
• Walking

Withdrawal Options: Depending on the terms of the rider, you may be able to withdraw all or a portion of your death benefit. You can use the funds for medical expenses, bills, or even something enjoyable like a vacation.

Considerations: Keep in mind that any money you receive from the rider will be deducted from the final payout to your life insurance beneficiaries. For example, if you withdrew 20% of your death benefit due to a chronic illness, your loved ones would receive the reduced amount when you pass away.

Qualification: Even if you have a chronic illness, some insurance companies may still offer life insurance for pre-existing conditions. So, don’t hesitate to explore your options.

Remember, the impact of tapping into your death benefit should be carefully considered, especially if others depend on you financially. If you have any specific questions or need further details, feel free to ask!

 Chronic illness riders can provide valuable benefits, but they also come with considerations. Let’s explore the pros and cons:

Pros of Chronic Illness Riders:

• Peace of Mind and Financial Security: Having a chronic illness rider offers reassurance. If you’re diagnosed with a qualifying chronic condition, you’ll have access to a lump-sum payment from your policy. This can help offset medical costs and lost income.
• Coverage for Lost Income: Chronic illnesses can lead to time off work or reduced earning capacity. The rider provides a financial cushion during such periods.
• Flexibility in Use: You can spend the rider funds as needed. Whether it’s medical expenses, home care, or other living costs, the choice is yours.

Cons of Chronic Illness Riders:

Potentially Lowered Death Benefit: When you withdraw money due to a chronic illness, your insurer deducts that amount from your policy’s death benefit. For example, if you withdrew 20% of a $100,000 policy, your beneficiaries would receive $80,000 upon your passing.

Increased Premiums: Adding a chronic illness rider often comes with an extra fee. Be aware that this can raise your overall premium.

Remember that the impact on your beneficiaries should be carefully considered. If others depend on you financially, balancing the need for immediate access to funds with the long-term benefit to your loved ones is crucial. Always consult with a financial advisor or insurance professional to make informed decisions tailored to your specific situation.