There is a "hidden" problem with the "Free" accelerated benefits for critical and chronic illness that agents seldom discuss with their clients. Life insurance is usually sold because there is going to be a need for money at death. If a person accelerates the benefit for cancer or some other CI, then the need for which the plan was purchased is no longer covered.. This can be disastrous if the plan is purchased for income replacement for the family or for a business situation such as funding a buy/sell..
The second drawback to these plans is even if you buying them to provide CI protection is you never know how much will paid for a covered event. The accelerated benefit is calculated upon how the event affects life expectancy, not the even itself. The client thinks he or she can depend upon x number of dollars being paid and that simply is not the case.
I sold these plans when I was with AGLA and while we were honest and forthcoming in our presentation, I now realize we did not spend near enough time explaining the potential disadvantages on accelerating the riders. As the Hills Street Blues Sgt. said, "Be careful out there"..
The second drawback to these plans is even if you buying them to provide CI protection is you never know how much will paid for a covered event. The accelerated benefit is calculated upon how the event affects life expectancy, not the even itself. The client thinks he or she can depend upon x number of dollars being paid and that simply is not the case.
I sold these plans when I was with AGLA and while we were honest and forthcoming in our presentation, I now realize we did not spend near enough time explaining the potential disadvantages on accelerating the riders. As the Hills Street Blues Sgt. said, "Be careful out there"..