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OK, so there has been a lot of talk recently on here about how the ABR riders on LI could possibly be used as a supplement or replacement to LTCI; and I thought it deserved its own thread.
Personally I am not sold on it at all yet.
The biggest problem I see are the limitations on ABR riders...
I have posted LFGs below.
As you can see, its capped at $250k, a nursing home confinement has to be "for life", no home health care clause, limited scope of illnesses & only $25K for illnesses.
Now, I will be the first to admit that I am no expert on the specifics of all the different ABR riders out there... maybe we can compare companies and find one that is suitable... WC was mentioned...
A. What Is An Accelerated Benefit? An Accelerated Benefit is a portion of the death benefit paid because (1) your life
expectancy is reduced to less than 6 months; (2) you are confined to an eligible nursing home for the balance of life;
or (3) you have a heart attack, stroke, major organ transplant, life threatening cancer, end stage renal failure,
permanent paralysis or Alzheimer’s Disease. The amount paid will be an interest bearing lien against the policy.
B. What Payment Options Are Available? Up to 50% of the death benefit for (1); 40% for (2); or 5% for (3). The maximum benefit in any case is $250,000 fo Ther (1) or (2) and $25,000 for (3).
This amount can be paid as a lump sum
or in periodic payments. You can choose the amount and frequency of periodic payments.
Are The Accelerated Benefit Proceeds Taxable? Unlike conventional life insurance proceeds, Accelerated Benefits
payable under this Rider May Be Taxable. Consult a personal tax advisor. Review very carefully the Accelerated Benefits
Rider for its provisions, limitations and benefits.
Any thoughts? Does anyone know of a more liberal ABR type rider?
Personally I am not sold on it at all yet.
The biggest problem I see are the limitations on ABR riders...
I have posted LFGs below.
As you can see, its capped at $250k, a nursing home confinement has to be "for life", no home health care clause, limited scope of illnesses & only $25K for illnesses.
Now, I will be the first to admit that I am no expert on the specifics of all the different ABR riders out there... maybe we can compare companies and find one that is suitable... WC was mentioned...
A. What Is An Accelerated Benefit? An Accelerated Benefit is a portion of the death benefit paid because (1) your life
expectancy is reduced to less than 6 months; (2) you are confined to an eligible nursing home for the balance of life;
or (3) you have a heart attack, stroke, major organ transplant, life threatening cancer, end stage renal failure,
permanent paralysis or Alzheimer’s Disease. The amount paid will be an interest bearing lien against the policy.
B. What Payment Options Are Available? Up to 50% of the death benefit for (1); 40% for (2); or 5% for (3). The maximum benefit in any case is $250,000 fo Ther (1) or (2) and $25,000 for (3).
This amount can be paid as a lump sum
or in periodic payments. You can choose the amount and frequency of periodic payments.
Are The Accelerated Benefit Proceeds Taxable? Unlike conventional life insurance proceeds, Accelerated Benefits
payable under this Rider May Be Taxable. Consult a personal tax advisor. Review very carefully the Accelerated Benefits
Rider for its provisions, limitations and benefits.
Any thoughts? Does anyone know of a more liberal ABR type rider?
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