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'Accelerated Benefits' Can Help Families Cope |
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Mike Madden, Vice President, Symetra Life Insurance Co.
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Last week The Seattle Times ran a heartbreaking story about a 50-year-old man recently diagnosed with terminal liver cancer.1
Given only six months to live, the former dental technician can no longer work. He, his wife, a homemaker, and their 5-year-old son are quickly running through the family's savings. As if dealing with the devastating illness is not hard enough on the family, they also worry about keeping up with the mortgage payments and medical bills. They don't know how they'll pay the COBRA2 premiums for his employer-sponsored healthcare coverage when it expires in August.
And, they have no life insurance.
As I read this tragic story, I couldn't help but think about how life insurance could have helped this family cope with the financial burden of losing their sole breadwinner. A few months ago they were a typical middle-class family. Now the 49-year-old wife is bracing herself for life as a single mom. She frets about finding a job to support herself and her son.
At the father's death, life insurance would have allowed his wife and son to pay off debt, cover living expenses and stay in the family home. But an "accelerated benefit option" — offered at no extra cost on all Symetra Life policies — could have eased the family's financial troubles while he's still alive. They could have used the money to maintain the family's healthcare coverage under COBRA.
The benefit paid out in advance of his death could have freed them to focus on what's important.
Accelerated Benefits
Symetra Life's accelerated benefit option is a living benefit. This no-cost option pays up to 100 percent of a "discounted" death benefit, in advance, if the insured is certified by a physician to be terminally ill with less than 12 months to live.3 By discounted, we mean that the benefit elected by your client will be reduced if there are any outstanding loans and loan interest against the policy, as well as a discount-rate calculation.4
Your clients may also be eligible to receive an accelerated benefit if they are confined to a hospital or skilled nursing care facility for at least 180 consecutive days and are expected to be confined until death.
If you'd like to learn more about living benefits on Symetra Life's term, universal and whole life products, visit us online or contact the Sales Center at invest@symetra.com or 1-800-706-0700.
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