Getting the news from the doctor that your father, mother, sister or brother has a terminal disease and has less than 24 months to live can be the worst moment of your life. You will never forget that moment and there is not much you can do but hope and pray that your loved one will live out his or her days as comfortably as possible.
If a terminally ill patient has a life insurance policy with an accelerated death benefit provision or rider, money can be advance while the insured is still alive. In San Antonio, Texas, families who face the prospects of paying for acute medical care and expensive home care, can use some of the death benefit to take good care of their loved one.
Whether you live in Bexar County or neighboring Comal County, the cost of caring for a terminally ill patient can be beyond the budget of the individual or individuals who take on the responsibility of looking after their loved one during their final months.
When you qualify for and take advantage of an accelerated death benefit, your life insurance company will give you a percentage of the death benefit of the policy. The amount that you can get depends upon the life insurance company, the surrender value, and a number of other variables. You no longer have to pay any more premiums and, upon the death of the terminally ill patient, any remaining death benefit will be paid to the beneficiaries.
In many cases, the money received through an accelerated death benefit is not subject to federal taxes. This is a complex matter and it is always best to get advice from an attorney or financial advisor who understands the implications of exercising your rights and taking an accelerated death benefit.
As your independent agent, we are here to help guide you through what is a very difficult time for everyone. Please give us a call and talk to an independent agent so you can explore other possible options such as pursuing a viatical or life settlement in the secondary market for insurance.