How Terminal Illness
Living Benefits Work Through ADB Riders
Terminal Illness Benefits
Early Access to Death Benefits with Nassau Safe Harbor Term Life Express
The Terminal Illness rider gives you the option to accelerate a portion of your death benefit if you are diagnosed as terminally ill with a life expectancy of one year or less.
HYPOTHETICAL EXAMPLE
Howard Buys A Policy
At age 50, Howard buys a Nassau Safe Harbor Term Life policy with a 20-year duration and a $150,000 death benefit.
Howard Has 12 Months to Live
Doctors detect that Howard suffers from an incurable disease. They tell Howard at age 65 that he has a year, at best, to live. Howard wants to take his children and grandchildren on a family vacation while he still can travel. He chooses to pay for it with his policy.
Howard accelerates 95% of his death benefit or $142,500. He receives a benefit of $136,164 which he can use for any type of expense.
Howard Passes Away
He passes away only nine months later. His beneficiaries receive the remaining death benefit of $7,500 upon his death.1, 2
Learn in Depth How This Rider Works
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.
Notes
1 The premium is reduced proportionally to the reduction in death benefits, but the annual policy fee is not reduced.
2 An administrative charge will apply upon rider exercise.
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