Are Accelerated Death Benefits Worth the Extra Cost?

[pfg1]

What carriers provide built-in cost-free critical illness riders, or chronic illness riders? I don't need a long list. Just a few off the top of your head would be great, if you don't mind sharing.

I don't think there is a way to actually find out how the cost of the "free" rider is factored in to the overall price of the product. With most there is probably nothing to compare it to within the same company structure. It would be alot different if it was ala carte. Add the rider, the premium goes to "x". The other thing is, the riders can vary big time in what they pay and how they trigger, which just adds to the difficulty of comparing "costs".

If company A has a more expensive premium, but carries a much more comprehensive and potentially beneficial rider than company B... which is a better value? Its easy to answer if you never needed the benefits the rider may provide. Beyond that, very difficult. Most carriers have terminal, many have chronic, much fewer have critical.

 

[Norwayguy]

You make a lot of good points here and I think the information is valuable/educational. I don't see here that anything I said deserved getting my entire post swept to the side like you originally did. But that's water under the bridge.

As for the portion in bold, I'm really curious to learn more about that and look forward to exploring that with my IMO. I've not seen any policies where critical illness or chronic illness riders are free.

What carriers provide built-in cost-free critical illness riders, or chronic illness riders? I don't need a long list. Just a few off the top of your head would be great, if you don't mind sharing.

Just an FYI many people use the app and it does not show your bolding.

 

[MichaelBurton]

I don't think there is a way to actually find out how the cost of the "free" rider is factored in to the overall price of the product. With most there is probably nothing to compare it to within the same company structure. It would be alot different if it was ala carte. Add the rider, the premium goes to "x". The other thing is, the riders can vary big time in what they pay and how they trigger, which just adds to the difficulty of comparing "costs".

If company A has a more expensive premium, but carries a much more comprehensive and potentially beneficial rider than company B... which is a better value? Its easy to answer if you never needed the benefits the rider may provide. Beyond that, very difficult. Most carriers have terminal, many have chronic, much fewer have critical.

Thanks, PFG! Good stuff.

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Just an FYI many people use the app and it does not show your bolding.

Yep. Good observation. I did not know that. Thanks.

 

[rousemark]

Both of those carriers tend to be on the expensive side.

Foresters is NOT a good choice for someone who is in good health. They only have 2 health ratings: Smoker & Non-Smoker. So you as a healthy person get the same Premium rate as people that are unhealthy.

I do not know if Auto Owners has multiple rate classes or not.


Whether the riders are worth it or not just depends. Many carriers have rates MUCH lower than Foresters and do not charge extra for their accelerated benefits riders.


What you need to question is the Premium of both. Not just one.

To give you some perspective, a 40 year old buying a $250k 20 year term policy, can pay as little as $18/m.
That is with multiple A+ rated life carriers such as Pac Life, Lincoln National, Met Life, American General, Protective, Principle, and plenty of others that are in the $18-$22 range per month.

Many of those in that range have Terminal Illness & Chronic Illness Riders that are included in that price.

How your quotes compare to that is what you should be worried about.

Just for the record, American General hasn't had an A+ rating for some time.

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I don't think there is a way to actually find out how the cost of the "free" rider is factored in to the overall price of the product. With most there is probably nothing to compare it to within the same company structure. It would be alot different if it was ala carte. Add the rider, the premium goes to "x". The other thing is, the riders can vary big time in what they pay and how they trigger, which just adds to the difficulty of comparing "costs".

If company A has a more expensive premium, but carries a much more comprehensive and potentially beneficial rider than company B... which is a better value? Its easy to answer if you never needed the benefits the rider may provide. Beyond that, very difficult. Most carriers have terminal, many have chronic, much fewer have critical.

A person needs to be careful when it come to the "free" riders. Most base the prospective payout on how the qualifying event effects mortality.. For example, if you have a heart attack and choose accelerate $100K of face, the compnay may just offer to actually pay you $40K for surrendering the $100K. If a person wants critical coverage they can depend on paying what they need when they need it, they need to choose a company that adds a stated benefit rider.... and those are almost never free.