Life Insurance with Living Benefits Solution

Profile:
Name: Mark
Gender: Male
Age: 45
Health: Nonsmoker, in great health
Type of Insurance: Indexed Universal Life (IUL) Insurance
Insurance Coverage: $500,000
Monthly Premium: $472
Background:

At age 45, Mark purchased an Indexed Universal Life (IUL) insurance policy worth
$500,000 to protect his family’s future. His policy not only provided a death benefit but
also had a cash value component that grew over time based on market performance.
Mark paid $472 per month for this flexible policy.

The Event:

At 53, Mark was diagnosed with prostate cancer, which progressed to a terminal illness,meaning doctors said he had a limited amount of time left. Faced with high medical billsand wanting to ensure his family’s financial stability, Mark used the Accelerated Death
Benefit (ADB) feature of his IUL policy.

  • What is a Terminal Illness? A terminal illness is a severe health condition where doctors expect the person to live for only a short time, usually a year or two.
  • What is an Accelerated Death Benefit (ADB)? The Accelerated Death Benefit allows people with serious illnesses to access part of their life insurance payout early. This money can help with medical bills, living expenses, or other urgent needs.
  • What’s Left After the ADB? Since Mark used 100% of his benefit, there was $0 left for his family after he passed away.
  • How the ADB Helped Mark: Mark chose to accelerate his death benefit and received $462,144 upfront. This cash payout helped him cover medical costs and take care of his family’s financial needs during his illness.
Key Takeaways:
  • 1. Early Preparation: Mark’s decision to buy an Indexed Universal Life (IUL) policy gave him more than just death coverage—it gave him financial flexibility when he needed it most.
  • 2. Living Benefits: The ADB allowed Mark to use a portion of his life insurance while he was still alive, helping him handle medical costs and provide for his family.
  • 3. Peace of Mind: Since Mark used 100% of his benefit, there was $0 left for his family after he passed away.The ADB helped reduce the financial burden on Mark and his family, allowing him to focus on his health and spend quality time with loved ones.

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