Critical Illness Insurance Coverage

[Benefits For America]

Is the CBL policy the one that is sold as a rider on a 10 yr term insurance policy?

Yes, and it is guaranteed renewable to age 70. Sold on direct basis thru bank draft or available on payroll deduction for groups. Requires 3 lives to set the case. Benefit determined on age, and tobacco status. No swabbing - simplified issue. Spouse and child riders available - $10K spouse - $5K child.

 

[somarco]

Does the death benefit reduce by an amount equivalent to the CI benefit payout or is the full face payable if death follows the benefit payment? If the full CI benefit is paid does the policy terminate or just the CI portion?

 

[Benefits For America]

Does the death benefit reduce by an amount equivalent to the CI benefit payout or is the full face payable if death follows the benefit payment? If the full CI benefit is paid does the policy terminate or just the CI portion?

The benefit is set for increments of 10 years. Upon each renewal, the face amount (like a term policy does) will reduce. The insured's option is to either accept the lower face amount or increase their premium to maintain the original ballpark face amount. Once the policy has paid out at 100%, the policy is terminated. The majority of the critical illness riders are listed to pay at 100% and then there are some of the heart procedures that will pay 25% and angioplasty is 10%. Death from any cause is 100%. This is a "one and done" (for the majority) but it's easy to see why it sells so quickly as it takes the guess work out of what may happen to us. It either pays us a living benefit just at the diagnosis or it will pay our family a death benefit.

Colorado Bankers Life also has another great plan which is a life policy and a tax-deferred annuity that has a 4% guaranteed minimum interest rate. These 2 plans have kept me busy for the past 5 years in our worksite market. Well-thought out plans.

 

[Norwayguy]

The benefit is set for increments of 10 years. Upon each renewal, the face amount (like a term policy does) will reduce. The insured's option is to either accept the lower face amount or increase their premium to maintain the original ballpark face amount. Once the policy has paid out at 100%, the policy is terminated. The majority of the critical illness riders are listed to pay at 100% and then there are some of the heart procedures that will pay 25% and angioplasty is 10%. Death from any cause is 100%. This is a "one and done" (for the majority) but it's easy to see why it sells so quickly as it takes the guess work out of what may happen to us. It either pays us a living benefit just at the diagnosis or it will pay our family a death benefit.

Colorado Bankers Life also has another great plan which is a life policy and a tax-deferred annuity that has a 4% guaranteed minimum interest rate. These 2 plans have kept me busy for the past 5 years in our worksite market. Well-thought out plans.

I've never understood the so/annuity combo, the so policy has the same interest rates and if the premium built up in the life policy the benefits would be tax free and and not penalized for pre 59 1/2 distributions. So just taking a little longer to educate a you can sell a real max funded plan.

 

[somarco]

Once the policy has paid out at 100%, the policy is terminated.

So this is an accelerated death benefit, not a health insurance policy.