How Critical Illness Living
Benefits Work Through ADB Riders
Critical Illness Benefits
Early Access to Death Benefits with Nassau Safe Harbor Term Life
Picture this: You took the time today to get life insurance for your family. Imagine your doctor finds breast cancer years in the future. The living benefit rider could allow you to access money that may be used for any purpose, including towards your medical treatment. This would give you the ability to focus on other priorities like spending time with your kids.
Nassau Safe Harbor Term Life issues quickly2 and offers basic death protection and more. Unlike basic term life insurance policies without living benefits, this product includes three types of living benefits through accelerated death benefit riders, and a premium waiver during unemployment.3 These riders offer additional flexibility and coverage for a number of unexpected events. We offer them at no additional premium.4
1 in every 8 women will be diagnosed with breast cancer.5
Fortunately, rapid advances in treatments have improved the odds of recovery. Good medical insurance can help cover the costs of the treatment. Even with great medical coverage, though, families can find themselves confronted with lost income and extra expenses that crop up along the way.
While it's not health or long term care insurance, the critical illness benefit rider
on our term life insurance policy could help alleviate financial stress.6
Here's how it could work in one hypothetical example:
A 40-Year-Old Woman Buys A Policy
She has a husband and two children. She works as a school teacher. Her husband runs his own painting business. At age 40, she purchases Nassau Safe Harbor Term Life with a 20-year duration with death benefit of $200,000.
Doctors Discover Breast Cancer
Seven years later, during her annual physical, she learns that she has breast cancer. Fortunately, with genetic testing, her physicians determine the exact type of cancer she contracted. They begin a two-year treatment program.
She Uses The Policy's Rider Benefit to Pay Bills
The woman's medical insurance plan covers most of the treatment costs. However, her husband has lost income while he cares for her. They have incurred costs for extra child care and extra help around the house.
She chooses to exercise the critical illness rider on her Safe Harbor Term Life Express policy and receives a portion of her death benefit early to cover the expenses. She accelerates 50% of her death benefit.
She Still Has $100,000 In Protection
The woman still has death protection in place for her family, even though her health history may now make finding additional coverage difficult.
Accelerated Death Benefit Calculation Example
Below are estimated payment ranges under the different accelerated benefits, for this Safe Harbor Term Life Policy:
- $200,000 face amount
- 20-year duration
- Female nonsmoker
- 50 years old at time of policy issue
- Acceleration election = $100,000 (50%)
- Remaining face amount = $100,000
| Severity | Payment | |||
|---|---|---|---|---|
| Chronic Illness | Temporary | $0 - $5K | ||
| Critical Illness | Mild | $10K - $30K | ||
| Moderate | $30K - $50K | |||
| Severe | $50K - $70K | |||
| Chronic Illness | Permanent | $75K - $85K | ||
| Terminal Illness | $95K | |||
Since the acceleration amount is being paid prior to actual time of death, a discount factor is applied, based on our assumption of future mortality for the qualifying condition. The acceleration amount is also reduced by the present value of unpaid future premiums. Chronic Illness claims due to a temporary condition have no change in future mortality, and the discount factor and future premium reduction described may be greater than the acceleration amount elected. These examples are based on company experience across a wide range of conditions. These benefits are not guaranteed. Actual results may be more or less favorable.
Learn in Depth How This Rider Works
We make it easy to create peace of mind through these three easy steps:
1) Get a quote
See how little it really costs each month to know you are covered by life insurance with Accelerated Benefit Riders.
2) Complete the application
Fill out our application. It only takes 15 minutes. We will ask a number of a number of questions about your health, who you would like receive the death benefits of the policy, and your bank account for future premium payments.
3) Spend 5-10 minutes on the phone
Complete the application during a short call with a licensed agent. We have a fast process to get you fully covered in a few days, if you are approved.2
We pride ourselves on the service
we provide people who purchase our policies
Notes
1 The extra benefits referenced are in the form of Critical, Chronic and Terminal Accelerated Benefits Riders. Riders are supplemental benefits added to a life insurance policy and are not suitable unless you also have a need for life insurance. The amount advanced at each acceleration will be reduced based on your condition and life expectancy determined at exercise. Death benefit is reduced by the benefit amount you elect to accelerate. You will not qualify for Nassau Safe Harbor Term Life if you have been diagnosed with breast cancer within the past two years. Critical Illness Rider is meant for individuals who are diagnosed with a critical illness after the issuance of a life insurance policy.
Receipt of Accelerated Benefits may be a taxable event and may affect your eligibility for public assistance programs. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you.
2 We offer Nassau Safe Harbor Term Life through an accelerated underwriting process. We offer Nassau Safe Harbor Term Life Express through a simplified issue process.
3 A 24 month waiting period applies.
4 An administrative fee will apply if rider is exercised.
5 SEER Cancer Statistics Review, 1975-2014, 2017
6 An administrative charge and an adjustment for future unpaid policy premiums will also apply. Multiple benefit elections are allowed for chronic and critical illnesses. For Chronic, one election per calendar year. For Critical, 180 days required between elections. The Critical Illness rider does not provide health coverage and is not Long Term Care Insurance. Exercise of the rider will result in an accelerated death benefit which will reduce the policy face value otherwise payable under this policy. See product brochure for additional details.
Important Disclosures
Insurance Products: NOT FDIC or NCUAA Insured NO Bank or Credit Union Guarantee.
Product features, riders and availability may vary by state. The Critical Illness Benefit rider is not available in CT
Phoenix does not provide individual tax advice. Please consult your personal tax advisor for assistance.
The ability to apply for coverage over the phone directly with Phoenix licensed agents is available in AZ, CO, CT, GA, FL, IL, IN, LA, MA, MD, MI, MO, MS, NC, NH, NJ, OH, OR, PA, SC, TN, TX, VA, WA, and WI at this time.
Guarantees are based on the claims-paying ability of the issuing company.
Nassau Safe Harbor Term Life and Nassau Safe Harbor Term Life Express (ICC14PPTL, 14PPTL) are issued by PHL Variable Insurance Company (PHLVIC) (Hartford, CT). PHLVIC is not authorized to conduct business in Maine and New York.
Members of The Phoenix Companies, Inc., a Nassau Re Company