Posted on January 23, 2016
When most people think of life insurance, they think of the death benefit it provides. Often overlooked are the benefits life insurance can bring you while you are alive. These living benefits can play an important role in helping you build and protect your assets.
Permanent life insurance offers a cash-value component that accumulates inside the policy and grows on a tax-deferred basis. The cash value can be accessed through income tax-free loans* that can help provide funds for:
- Major medical bills
- The down payment or closing costs on a home
- College tuition expenses
- Major home or car repairs
- Supplemental retirement income
Unlike loans from a bank, there is no credit check or income verification required to access the cash value of your life insurance policy. This ensures that you have access to the money when you need it most.
Optional Chronic Illness or Terminal Illness Riders
These riders typically pay benefits if you acquire a permanent chronic illness or cognitive impairment such as dementia, that meet certain criteria, and impact your ability to function in daily life. How common are chronic illnesses? According to the U.S. Centers for Disease Control and Prevention, 50 percent of adults in the U.S. had at least one chronic illness in 2012. Similar riders provide benefits if you are diagnosed with a terminal illness.
Waiver of Premium Riders
Most life insurance policies offer an optional waiver of premium rider. The rider provides that the required policy premium will be waived if you become totally disabled. Expenses as a result of disability can wipe out savings and cause financial chaos. A waiver of premium benefit can ensure that your life insurance policy continues and the proceeds are there when needed.
Don’t overlook the living benefits that life insurance offers. It’s a financial tool that can make life a lot easier.
For more information, contact your Ohio National Financial Professional.
The optional Accelerated Benefit Rider provides for a partial acceleration of the policy death benefit in the event that the base policy insured is certified by a licensed physician as being chronically ill or terminally ill. By taking an accelerated death benefit payment, a lien is created against the policy death benefit. The lien accrues carrying charges at an adjustable rate we declare. The lien, including the lien carrying charges, will be deducted from the total death benefit otherwise payable to the policy beneficiary(ies) and will reduce the cash value available for policy loans, surrenders, or the exercise of any non-forfeiture option. The required premium for the policy must still be paid even if an accelerated death benefit is taken. If an accelerated benefit is taken and the policy lapses or otherwise terminates, a taxable event may occur. Any death benefit provided by an optional Accidental Death Benefit Rider is not available for acceleration under this rider. Any accelerated benefit you elect to take under this rider may be taxable. Consult your tax advisor on all tax matters. Adding the rider to a life insurance policy or the taking of rider benefits may affect eligibility for certain public assistance programs and government benefits. The Accelerated Benefit Rider is not designed to be a substitute for long-term care insurance, health insurance, or nursing home insurance. Rider benefits and features may vary by state.
Whole Life product form numbers: 06PW-1/1U,06-PW-1/1U 07-PTD-1, 06-PW-1/1U+; UL form: 11-QL-1/1U; ABR form: ICC14-CAD-1and any state variations.
Life insurance is issued by The Ohio National Life Insurance Company. Guarantees are based on the claims-paying ability of the issuer. Products, product features, and rider availability vary by state. Issuer not licensed to conduct business in NY.