Living Benefits & Optional Riders
An Indexed Universal Life policy isn't one-size-fits-all. Depending on the carrier and policy, living benefits and optional riders can provide additional protection and financial flexibility during your lifetime.
These features may allow you to access benefits during qualifying health events, protect your policy, enhance coverage, or provide additional financial options.
Rider availability, eligibility requirements, costs, benefit amounts, payment options, and terms vary by insurance carrier, policy, and state.
Living Benefits
In addition to the Accelerated Access Chronic Illness Protection Rider, certain IUL policies may offer living benefits that allow you to access a portion of your death benefit while you're living following certain qualifying health events.
Depending on the carrier and policy, these may include:
Chronic Illness Benefits
May provide access to a portion of the death benefit following a qualifying chronic illness to help with care, medical expenses, or other financial needs.
Critical Illness Benefits
May provide access to a portion of the death benefit following a covered critical illness, such as cancer, heart attack, stroke, or another specified condition.
Terminal Illness Benefits
May provide access to a portion of the death benefit following a qualifying terminal illness, subject to the policy's definition and requirements.
Living benefits may help provide financial resources for medical care, treatment, long-term care, lost income, home modifications, family support, or other needs.
Additional Optional IUL Riders
Beyond living benefits, an IUL can be customized with additional riders designed to address specific protection and financial needs.
Depending on the insurance carrier and policy, available riders may include:
- Enhanced Surrender Value Rider (ROP) — May enhance the policy's early surrender value and potentially improve liquidity during the policy's earlier years.
- Maturity Extension Rider — May extend policy coverage beyond the standard maturity age, subject to the policy's terms.
- Overloan Protection Rider — May help protect the policy from lapsing due to an excessive outstanding loan balance, subject to the rider's requirements.
- Protected Premium Rider — May provide additional protection against policy lapse when required premium payments are made, subject to the rider's terms.
- Waiver of Monthly Deduction — May waive certain policy charges under qualifying circumstances, such as disability.
- Accidental Death Benefit — May provide an additional death benefit if death occurs as the result of a covered accident.
- Child Insurance Benefit — May provide life insurance coverage for eligible children, with conversion options depending on the policy.
- Select Income Rider — May provide structured options for creating an income stream from policy values, depending on the carrier and policy.
