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Congratulations on taking an important step towards financial responsibility. You are savvy and well prepared, otherwise you wouldn’t be reading this article!

Now, you may have concluded that your loved ones and your legacy deserve protection. Now that you are taking the adequate steps to responsible financial planning, let’s talk about a specific feature included in your Lifefy policy that might come as a surprise. This complimentary add-on rider that goes beyond what you might know about Life Insurance.

Let’s talk about the Accelerated Death Benefit rider.

First, let’s talk about the essence of it. If a doctor tells one of our clients that they only have 6 months left to live, this is the provision that will help them cover those medical bills and any outstanding financial issues, while living. It aids in the planning that will surely be required. In the industry, a provision such as this is called a “rider.”

What’s a rider?

Riders are additional benefits and features included with, or added, to a policy. Riders are designed to further customize and tailor plans that meet the unique needs of individuals. Think of them as sides that complete the meal we call a Life Insurance policy. This particular rider is included with the Lifefy solution, at no extra cost!4  Many people purchase their life insurance policy and are completely unaware that they have this option. Whether you already have active policies or just started shopping around in order to be a better-informed consumer, understanding how they work is important.

So, what is it?

It’s yet another reason people require life insurance! The Accelerated Death Benefit is a rider in life insurance that allows the policyholder to access a good chunk of the death benefit in the event that the insured is diagnosed with a terminal illness. The rider indicates a set maximum length of time in which the insured is expected to pass. If the diagnosis indicates the insured will pass within that period, they are eligible to receive the payout indicated in the rider. This payout is usually a percentage of your death benefit. For Lifefy policyholders, it’s up to 50% and comes at no extra cost.4

What’s the point?

This rider puts a chunk of the payout from life insurance on the policyholders lap, giving the insured plenty of time to settle any outstanding financial issues. That way, the grieving family doesn’t have to take care of everything. It’s important to note that this lump sum is directly taken from the original death benefit. Whatever is left over after the Accelerated Death Benefit is paid out is what is then distributed at the time of the policyholder’s passing. That’s not necessarily a negative. Why? It’s all about the surviving members of a family. The time of grief is important. It is a healing process required by most people in order to organize their own thoughts and learn to live again. If this precious period is stolen by a financial quarrel, it can be disastrous. Getting a head start on the onset of a terminal illness diagnoses alleviates the survivor’s stressors and anxieties.

Do I really need it?

Let’s take a look at just one type of illness that might influence a decision, cancer. In the United States, over 60,000 young adults from the age of 20 to 39 are diagnosed with cancer on a yearly basis. As unfortunate as it is, of all cancer diagnoses, 4% are individuals in this age range. Each year, about 9,000 adults die from cancer.

Since this feature is included with a simple and affordable Lifefy policy, there’s nothing holding you back from protecting your family’s financial stability. Through our completely digital experience, peace of mind awaits.  

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