Dedicated to Civilian Federal Employees since 1943

Dedicated to Civilian Federal Employees since 1943

Chronic Illness

What Are the Benefits of Having a Chronic Illness Rider?

If you or someone you know has ever had to care for a loved one with a chronic disease or condition, you know the associated emotional, physical, and financial burden it can bring. During such times, it becomes more of a necessity than ever to plan ahead for extended care. This is where the Chronic Illness Rider insurance coverage comes into play, to help you and the people you love to find peace of mind. Here are several reasons to add a Chronic Illness Rider to your WAEPA Group Term Life Insurance policy. You must be under age 65 to apply for the Chronic Illness Rider.

 

Helps Take Care of Extensive Medical Bills

What would happen if you were diagnosed with a debilitating illness? You may find yourself needing medical treatment for the rest of your life, and this may include physical or occupational therapy and medications. Your savings, income, or investments may cover the cost of these treatments. But in a period when you should be concentrating on recovering from the illness or spending the remaining days with your family, the staggering medical bills can feel crippling. One way to avoid this potential financial burden is by adding a Chronic Illness Rider to your life insurance coverage.

 

Can Be Used However the Recipient Chooses

The money from a Critical Illness Rider could also be used for other expenses such as making your home more accessible for your new situation and buying a wheelchair. Imagine the peace of mind from knowing that you have enough money required to adapt your home to be your specific needs. You can also use the money to pay your mortgage, ongoing living expenses, and replace lost income. Alternatively, you can save for your children’s education benefits or put money towards spouse retraining. And if you need to take a vacation to relieve the stress brought about by the illness, this coverage might come in handy.

 

Pre-Death Benefits for Unexpected Illnesses

You might think that a chronic illness won’t happen to you, but life has a way of changing fast, and you could be diagnosed when you least expect it. A Chronic Illness Rider on your WAEPA Group Term Life Insurance coverage makes sure you get pre-death benefits when the unimaginable happens. This also means that your family will not be left with drained bank accounts or massive amounts of debt even after your passing. And if you don’t use your living benefits, your beneficiaries still get the full amount of your death benefit.

Individuals who are already terminally ill may not be able to qualify for chronic illness rider or find a new policy. With that in mind, it becomes vital to have the coverage in place before the need arises. While a Chronic Illness Rider won’t replace your health care or life insurance coverage, the cost can be an economical option while providing a living benefit and a life insurance death benefit.  So, don’t wait to get insurance protection, make the choice today for a safe tomorrow.

 

This is a life insurance benefit that also gives you the option to accelerate some of the death benefit in the event that you are certified with a chronic illness as described in the certificate. 

IMPORTANT NOTICE: This rider is not intended to be a federally tax-qualified long-term care insurance contract under Internal Revenue Code (IRC) Section 7702B.  Therefore, the premiums payable for this rider do not qualify as long-term care insurance premiums and are not deductible from gross income for federal income tax purposes.  This rider, however, is subject to the federal per diem limits set forth in IRC Section 7702B.  Under this rider, New York Life will not pay claimants more than the federal per diem limits.  Assuming the amount you receive in the aggregate from all applicable policies does not exceed the federal per diem limits set forth in IRC Section 7702B, the benefits provided by the Chronic Illness Rider are intended to be excludable from federal gross income under Section 101 (g) of the IRC.  

Receipt of an accelerated death benefit may affect eligibility for Medicaid or other government benefits or entitlements and may have income tax consequences. Accelerating benefits before applying for these programs, or while you are receiving government benefits, may affect your initial or continued eligibility. Clients can contact the appropriate social service agency (e.g., the Medicaid Unit of your local Department of Public Welfare or the Social Security Administration Office) for more information.

The following states are not eligible for CIR: CT, ID, LA, MN, MT, NC, OH, SD, UT, WA

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This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.